Bulgaria and Greece have signed an agreement Tuesday to construct a natural gas pipeline from the Bulgarian city of Stara Zagora to the Greek town of Komotini.

An official announcement stated that the Bulgarian Energy Holding signed an agreement with Greek natural gas monopoly DEPA and Italy's Edison SpA for the creation of a company that will construct and operate the pipeline as well on the creation of a company that will supply and make commercial use of the natural gas.

The link will allow Bulgaria to import 1 billion cubic meters of Azeri gas per year from 2012 through the ITGI pipeline due to carry Caspian gas via Turkey and Greece to Italy.

The new pipeline will receive EUR 45 M from the EU Energy Programme.

Bulgarian Energy Holding, who are state-owned, also signed a deal with Greece's gas grid operator DESFA to use the capacity of the Greek LNG terminal near Athens and import 1 bcm of gas per year.

Greek officials concluded; "GreeceО„s energy security is enhanced by establishing stronger, safer and a bigger bulk of natural gas to and from our country."