Bulgartransgaz Opens Procedures for Expansion of Chiren Gas Storage Facility

NW 13:58:31 15-03-2022

Bulgartransgaz Opens Procedures for
Expansion of Chiren Gas
Storage Facility

Sofia, March 15 (BTA) - Bulgartransgaz EAD Tuesday said it is opening two public procurement procedures in relation to the expansion of the Chiren underground gas storage facility, a project which the State-owned gas operator describes 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 300 million leva exclusive of VAT.

Since 2013, the expansion of the Chiren facility has been in the Projects of Common Interest category of the EU; it is also a Three Seas Initiative priority project. The project is part of Bulgaria's energy strategy and is an inseparable part of the infrastructure contributing to the concept of a gas distribution centre on the country's territory, together with the projects for modernizing Bulgartransgaz' infrastructure, the Alexandroupolis liquefied natural gas (LNG) terminal, and the gas interconnectors with Greece and Serbia.

The first public procurement procedure 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. The new installations will provide the new highly reliable equipment necessary to rehabilitate the existing and to build new gas transmission network sites; the storage facility's exploitation safety and capacity will increase.

The procedure's estimated value is 300 million leva exclusive of VAT. The activities under the procedure will be funded with resources of Bulgartransgaz and with grant aid under the Connecting Europe Facility following the signing of a grant agreement. The deadline for submitting offers for participation in the open procedure is April 20.
The second public procurement procedure 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 the area of Boutan village. The procedure's estimated value is 820,000 leva exclusive of VAT. The activities will be funded with the operator's own resources.

The greater 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 Alexandroupolis LNG terminal in which Bulgartransgaz holds a 20 per cent share.

The Environment and Water Ministry has already initiated an environmental impact assessment of the Chiren expansion project that is expected to be ready by May./ZH/DS