DESFA and NER JSC SKOPJE signed today, September 10th, 2021, a Cooperation Agreement for the development and construction of the Greece-North Macedonia Gas Interconnector, in the framework of the 5th Southeast Energy Forum held in Thessaloniki by the American-Hellenic Chamber of Commerce (AmCham) and the Hellenic Association for Energy Economics (HAEE), in cooperation with the Embassy of the United States of America in Greece and the strategic partnership of the Atlantic Council and the U.S. Chamber of Commerce.
The agreement was signed between the CEO of DESFA, Maria Rita Galli and the Executive Director of NER JSC SKOPJE, Bajram Rexhepi, in the presence of the Minister of Environment and Energy of Greece, Kostas Skrekas, the United States Ambassador to Greece, H.E. Geoffrey R. Pyatt and the United States Ambassador to North Macedonia, Kate Mary Byrnes.
More specifically, the Cooperation Agreement establishes the cooperation principles pursuant to which DESFA and NER intend to coordinate the main phases, respective commitments and accompanying milestones of the development of the gas pipeline interconnection project, including the launch of the binding Market Test later this year, in accordance with the terms and conditions that will be approved by RAE, and following the Final Investment Decision (FID) by both parties, expected in the first half of 2022, facilitating the timely and effective completion of the project’s construction, in accordance with an agreed time schedule.
It is noted that the Cooperation Agreement follows the relevant bilateral agreement signed on July 9th, 2021, between the Greek Minister of Environment and Energy, Kostas Skrekas and the Minister of Economy of North Macedonia, Kreshnik Bekteshi, and builds on the Memorandum of Understanding (MoU) already been signed for the project between DESFA and NER in October 2016, as amended in April 2019 and supplemented by non-binding terms in March 2021.
The pipeline is planned to have a total length of 123 km and will extend from Nea Mesimvria to Negotino via Evzoni/Gevgelija, connecting the national natural gas transmission systems of Greece and North Macedonia, operated by DESFA and NER respectively. Its initial capacity will be 1.5 billion cubic meters per year, with the possibility of expanding to 3 billion cubic meters per year, while studies have been carried out for the pipeline to adopt the appropriate requirements for the transport of green hydrogen.
The project, with a budget estimated to reach €110 million, will further upgrade the role of Greece as a gas hub, strengthening its position as an energy crossroad, with the transmission of natural gas from the Natural Gas Transmission System of Greece to North Macedonia and beyond. On the other hand, it will allow North Macedonia to improve its environmental footprint, substantially contributing to the energy transition of the country with the diversification of natural gas supply, enhance security of supply and the gradual replacement of the most polluting sources of electricity with natural gas, contributing to the overall European commitment for a climate-neutral continent by 2050.
The Minister of Environment and Energy of Greece, Mr. Kostas Skrekas, stated: “The Greece-North Macedonia Gas Interconnector will further upgrade the geopolitical role of Greece, which is steadily establishing itself as an energy crossroads and gas hub in Southeastern Europe. We enable our northern neighbor to reduce its environmental footprint, by gradually replacing more polluting sources of electricity with natural gas and contributing to the overall European goal of a climate-neutral European economy by 2050. The project is important as it will be a growth lever for the economies of the two countries, with the creation of thousands of jobs during the construction of the pipeline”.
The United States Ambassador to Greece, H.E. Geoffrey R. Pyatt, noted: “We welcome this agreement as another important example of the positive economic agenda developing between Greece and North Macedonia, building on the vision of the Prespes Agreement and, further ensuring secure energy supplies for Southeastern Europe.”
The CEO of DESFA, Maria Rita Galli, stated in this regard: “Τhe signing of the cooperation agreement today between DESFA and NER gives a significant boost for the development of a mutually beneficial project for Greece and North Macedonia, while further establishing DESFA role as an enabler of the transition of the South-East Europe region to an interconnected and more sustainable energy future. DESFA remains faithful to its vision of placing Greece at the core of energy developments, by paving new energy ways and transforming the country into an international energy hub of a sustainable, secure and economically efficient European market”.
The Executive Director of NER JSC SKOPJE, Bajram Rexhepi, stressed that: “Τhe signing of this agreement between the two companies is among the last and very important steps, towards our final goal, the beginning of the realization of gas interconnection. The construction of this corridor, not only will diversify, but will also create a stable source of our natural gas supply, and its benefits will be available not only to North Macedonia, but to our northern neighbors as well. Our cooperation with DESFA, will not end with the completion of the gas interconnection, and of course this partnership will deepen and extend to other areas as well, in order to offer favorable conditions in the energy market”.
