Bulgarian gas transmission system operator Bulgartransgaz launched on Friday a 12.3 million euro ($13.97 million) gas pipeline connecting the town of Silistra, in the northeast of the country to the national gas transmission network, the European Bank for Reconstruction and Development (EBRD) said on Friday.

Out of the total cost of the project, 9.3 million have been provided as grant financing by the Kozloduy International Decommissioning Support Fund (KIDSF), administered by the EBRD, and the balance is financed by Bulgartransgaz, the international lender said in a press release.

The construction works were implemented by Italian pipeline company SALP.

The 80 km high pressure gas pipeline has a diametre of 350 mm and a transmission capacity of 100,000 cu m per hour.

Its launch is expected to result in 35% lower energy bills for local customers. The new pipeline will provide gas to two industrial areas in Silistra with a total of 26 industrial clients, the EBRD added.

The completion of the new pipeline will also allow Citygas, the gas distribution company that holds the license for Silistra, to start constructing the local network in the city, the EBRD also said.

Citygas is a subsidiary of the Italian Gruppo Societa Gas Rimini  and is working on the development of gas networks and natural gas distribution in over 30 municipalities in the country with an investment volume of 63 million euro, 30 million euro of which have been provided as a loan by the EBRD and 2.33 million euro as KIDSF contribution. To date, close to 700 km of pipeline have been constructed and are in operation.

KIDSF was established in June 2000 to support Bulgaria with closing and decommissioning units 1 to 4 of its sole nucleap power plant Kozloduy due to safety concerns.

Source: SeeNews