* Final investment decision expected in June next year
* IGB pipeline to reduce Balkan countries' dependence on Russian gas
SOFIA, Oct 18 (Reuters) - Gas could start flowing through a Bulgaria-Greece pipeline in the middle of 2016, a company official said on Friday of a plan that would allow Sofia to reduce its dependence on Russian supplies.
Elio Ruggeri, chief executive of IGI Poseidon, which has a 50 percent stake in the planned IGB pipeline, said market tests had shown there was interest from users for the 180 km project, and that a final investment decision would be taken next year.
"This project is pivotal for the southeastern European market. We can see countries promoting interconnector links in the region...However, without IGB, all the interconnectors will be shipping Russian gas around," Ruggeri told an economic forum.
He said shippers would be asked to place binding offers to book capacity.
" ... based on that we are targeting a final investment decision in June next year. Construction will not take long, so we are planning to start commercial operations around the middle of 2016," Ruggeri said.
The pipeline, with annual capacity of up to 5 billion cubic meters (bcm), is expected to cost around 200 million euros ($273.28 million), some 45 million of which will be provided by the European Union.
IGB is owned equally by IGI Poseidon, a joint venture between Greek state company DEPA and Italy's Edison
Ruggeri said the link would be able to transport natural gas from the Caspian region, as well as liquefied natural gas (LNG) from LNG terminals in Greece and other sources that can reach other southeastern countries, once Bulgaria links its gas network with Romania and Serbia.
Bulgaria pledged to step up building gas links with neighbouring countries after 2009, when a spat between Ukraine and Moscow left it without natural gas for almost two weeks, keeping hundreds of homes without heating during a cold winter.
Bu the Balkan country has not yet linked its gas pipeline system to any of its neighbours and meets its gas needs with imports from Russia's Gazprom,
Deputy Energy Minister Ivan Ayolov told the forum that the new Socialist-led government was working to make up for the delays. He said a 20 km gas link with Romania was expected to become operational in January.
A gas link with neighbouring Serbia should be built in the first half of 2016, while serious efforts were needed to reach an agreement with Turkey over a pipeline, Ayolov said. ($1 = 0.7319 euros)
(Reporting by Tsvetelia Tsolova, Editing by Patrick Lannin)
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Keywords: BULGARIA GREECE/GAS
