Greece, Bulgaria Finalizing IGB Gas Pipeline Deal

Greece and Bulgaria will seal a deal in the coming weeks to build a gas pipeline connecting the two countries, part of the Southern Corridor infrastructure scheme to bring Caspian gas to Europe, two Greek energy ministry officials said on Friday.

The Interconnector Greece Bulgaria (IGB) project is estimated to cost about 100 million euros ($112 million) and the European Union has approved about 45 million euros in funding to build the pipeline, a senior energy ministry official said.

The 180 km (110 mile) pipeline will have a capacity of 3  billion cubic metres (bcm). It will be built by a Greek-Bulgarian joint venture set up in 2011 which includes Italian energy group Edison SpA.

"All the necessary procedures have been concluded," said the official, declining to be named. "The agreement is expected to be signed in the coming weeks."

A second official confirmed that the deal was expected soon, adding that only a few issues remained to be settled.

Prime Minister Alexis Tsipras's leftist-led government has been pursuing a diversified energy policy and has made an  overture to Moscow by supporting the planned extension of a gas pipeline that will transport Russian gas to Europe via Turkey and Greece.

Tsipras is due to meet Russian President Vladimir Putin at  an annual business conference in St Petersburg on June 18-20 and the two leaders are expected to discuss the so-called Turkish Stream.

Reporting by Angeliki Koutantou