The European Bank for Reconstruction and Development (EBRD) is planning to grant EUR 98.6 million to North Macedonia’s state-owned company NOMAGAS to diversify natural gas supplies to LNG terminals in North Macedonia and Greece, as well as to provide Serbia with natural gas, through the Trans-Adriatic Pipeline (TAP).
The approval of the loan by the bank’s Board of Directors is expected on April 24. The total cost of the project is 140 million euros.
The loan proceeds would be used for the construction of a 100% hydrogen-ready natural gas interconnection pipeline with Greece (66km; interconnection) and two natural gas transmission pipelines, Gostivar to Kicevo (34km; Section 1) and Sveti Nikole to Veles (28km; Section 2) in North Macedonia.
“The investments will supply gas to North Macedonia. This enables an accelerated transition away from coal and towards renewable energy by decommissioning existing coal-fired Thermal Power Plants (TPPs) by 2030. It is expected that 1.7 GW of renewable energy will also be deployed, which will result in a net 82% reduction of Green House Gas emissions by 2030. Furthermore, the Project will significantly reduce air pollution by displacing inefficient forms of heating in the commercial and residential sectors and the use of petroleum products and solid fuels.
The Project is also 100% hydrogen-ready and does not prevent the entry of low-carbon solutions into the end-use markets. The Project facilitates the diversification of gas supply to North Macedonia through the Trans Adriatic Pipeline (TAP) and LNG terminals in Greece, also providing the possibility to supply neighbouring Serbia. This will improve the competitiveness of private sector businesses and reduce gas prices, through increasing gas supply by 2.5 times (from existing 0.8 bcm to 3.6 bcm) and thereby further support the decarbonization of the energy sector at a lower cost of supply,” reads the report.
