Greece: Extended tender deadline for underground gas storage facility in Kavala

, SEE Energy News

The tender has been launched in late June. The deadline has been extended from initial 31 August to 30 September. Greek privatization fund TAIPED said that it has decided to extend the deadline for the submission of expression of interest for the concession for the use, development and operation of an underground natural gas storage facility in the almost depleted natural gas field South Kavala. TAIPED provided no explanation for the reason of this extension.

Natural gas field South Kavala is located in the southwestern part of the Prinos-Kavala basin, in 52 meters of water depth in the North Aegean Sea, about 6 kilometers off the west coast of Thassos. The duration of the concession agreement will be up to 50 years. The conversion of the natural gas field South Kavala into an underground gas storage will be carried out by the concessionaire within a binding period to be determined in the concession agreement. According to estimates, underground gas storage facility will cost about 240 million euros and will provide annual transmission capacity of 360 million cubic meters, with a potential to be doubled. Greece has launched a balancing platform for natural gas in 2018 and is currently planning its development into an organized gas market envisioning the country’s establishment as a regional commercial gas hub. New gas entry points, besides Trans-Adriatic (TAP) pipeline, will be needed to secure sufficient gas quantities and flexibility during this transition, and the role played by the Kavala underground storage during this stage will be vital. The underground gas storage facility at Kavala depleted gas field is intended to serve as an energy infrastructure that will enhance the security of supply in the Greek market as well as in southeastern Europe ensuring gas supply to end users and facilitating the security-of-supply obligations of power producers and natural gas suppliers.