Bulgaria, Bulgartransgaz launched another tender related to Chiren underground gas storage expansion

, SEE Energy News

Bulgarian state-owned natural gas transmission system operator Bulgartransgaz said that it has launched a tender for the construction and drilling of new wells as part of the larger project for the expansion of the Chiren underground gas storage.

According to tender documentation, the tender is related to spatial planning, investment design, supply of necessary materials and equipment, construction and commissioning of underground wells at Chiren gas storage.

Estimated value of the contract is 68.4 million euros. Bids can be submitted until 4 May.

The activities within the scope of the procurement procedure will be financed out of Bulgartransgaz’ own funds and a grant awarded under the EU’s Connecting Europe Facility. In January, the European Commission granted 78 million euros to the operator to fund the expansion of Chiren underground gas storage, which is seen as crucial for the security of gas supply in southeastern Europe.

Earlier in March, Bulgartransgaz launched two public procurement procedures related to the expansion of the Chiren underground gas storage facility, a project described as strategically important for improving energy security and increasing competitiveness and liquidity on the natural gas market in Bulgaria and the region. The project is worth over 150 million euros (excluding VAT).

The first public tender is for the delivery of the necessary materials and equipment, construction and putting into operation of the expansion of the facility’s ground part. That includes a new gas metering station and a compressor station with the related technological installations. Estimated value of the tender is around 150 million euros (excluding VAT). The activities under the procedure will be funded with resources of Bulgartransgaz and with grant under the Connecting Europe Facility following the signing of a grant agreement. The deadline for submitting offers is 20 April.

The second tender is aimed at providing project readiness for the construction of a gas pipeline connecting the Chiren facility with the existing gas transmission network of Bulgartransgaz in near the village of Boutan. Its estimated value is around 420,000 euros (excluding VAT), and will be funded with Bulgartransgaz’ own resources.

The increased capacity of the gas storage facility is expected to attract new traders, including LNG traders, because the project is related to the construction of the Alexandroupoli LNG terminal in northern Greece, in which Bulgartransgaz holds a 20 % share.