(Greece) – On July 1 2016, M&M Gas, an independent gas company in Greece, exported the first of its gas to Bulgaria. Recently, the gas network operators DESFA and Bulgartransgaz signed an agreement that would allow gas to be transported from Greece to Bulgaria. These recent deliveries were done in small batches as a way of performing a test. The gas that was sold came fro M&M’s personal gas portfolio, which includes the LNG. The agreement that was signed also allows for the possibility of a virtual gas supply that would come from the Revithossa LNG gas terminal that is located in Greece.
According to Hellenic News, the gas was shipped on, “a very small discount to Bulgarian regulated price.” At the moment, the wholesale price of gas in Greece is fairly low. Back on July 1, 2016, the industry underwent its quarterly revision. The trade took place at the interconnection point Kulata-Siderokastro.
Back in June, M&M Gas became part of a joint venture with Mytilineos and Motor Oil Groups. This made M&M Gas the first independent company to import gas from Bulgaria. The transport was also done in several test batches. Also, Greece and Bulgaria are also working on creating an interconnection from the Trans-Adriatic Pipeline. They have recently sped up the completion of this joint project.
The agreement between DESFA and Bulgartransgaz will allow the transport of gas between Greece and Bulgaria. The signing ceremony took place on July 1 in Sidirokastro, which is located in the northeast portion of Greece. Besides being an important deal for the two countries, this will also benefit consumers. Since this allows for greater competition between gas suppliers, it is expected to drive down prices. The European Commission is in favor of the deal saying, “The agreement is also the first step in giving access to other market players – for north- or southbound deliveries – along and beyond the important Trans-Balkan gas corridor between Greece, Turkey, Former Yugoslav Republic of Macedonia and Ukraine.”