The contract was signed between the consortium and project proponent ICGB AD in Sofia, Bulgaria, concluding an international tender which was issued in January 2011, and in which worldwide renowned engineering firms participated.

The contract signing represents the commencement of a decisive phase for the Interconnector Greece – Bulgaria (IGB) project. The provision of the front-end engineering and design (FEED) and environmental impact assessment (EIA) services will commence at the end of August and are expected to be completed in the fourth quarter of 2012.

The IGB project will involve a 170 km pipeline with reverse flow capability that will connect Komotini, Greece, and Stara Zagora, Bulgaria. The pipeline will have a transit capacity of 3 Bcm/a of gas, which could be increased to 5 Bcm/a.

The project is planned to reinforce the security and provide diversification of supply in south eastern Europe. The realisation of the IGB project, as well as the Interconnection Turkey – Greece – Italy gas pipeline, will enable the delivery of Caspian and central Asian gas to south east Europe from as early as 2014. The IGB project will also provide the opportunity to supply gas from LNG terminals in Greece and Turkey.

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The IGB project has already secured European Union co-financing of over $US64.3 million under the European Energy Program for Recovery.

ICGB AD is a 50–50 joint venture between Bulgarian Energy Holding and IGI Poseidon, established in January 2011 with the purpose of implementing and operating the IGB project.