Greece, South Kavala underground gas storage tender will likely attract no binding bids

, SEE Energy News

The deadline for the submission of binding bids for the future underground natural gas storage facility at the almost depleted South Kavala gas field in the Aegean Sea’s north will pass on 28 November, more than two and a half years after its launch.

However, none of the two second-round participants – a consortium of GEK-Terna and natural gas transmission system operator DESFA and Energean Oil & Gas are likely to submits bids, citing financial unviability sue to pricing regulations as the main reason.

This will significantly affect the future of Greek energy market since Greece has no underground gas storage facilities and relies solely on liquefied natural gas (LNG) facility at Revythoussa near Athens.

Last April, state privatization fund TAIPED announced that a consortium of GEK-Terna and natural gas transmission system operator DESFA and Energean Oil & Gas as a sole bidder, have qualified for the second, binding round of a tender for the development and operation of underground gas storage in the depleted natural gas field South Kavala.

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.