September 12 (SeeNews) - Bulgaria is negotiating with various financial institutions, including US state-owned funds, financing options for the planned expansion of its sole underground gas storage (UGS) facility Chiren, Bulgratransgaz chief executive Vladimir Malinov said.
The Chiren expansion project is foreseen to be completed by the end of 2024, closely following the expected commissioning of the Alexandroupolis floating liquefied natural gas (LNG) terminal in Greece at end-2023 or early 2024, Malinov said as seen in a video by state broadcaster BNT on Sunday.
In August, the state gas grid operator launched three tenders worth an estimated total of some 517.7 million levs ($268.4 million/264.7 million euro) for the planned expansion of the Chiren site, including the design and construction of underground and above-ground infrastructure facilities as well as the site's connection to the existing transmission system.
Earlier this year, Bulgartransgaz secured a European Union grant of 78 million euro ($79.1 million) to finance part of the expansion, which is set to nearly double Chiren's gas storage capacity to 1 billion cubic metres (bcm). The withdrawal and injection capacities are also projected to rise, to between 8 million and 10 million bcm per day.
As well as being pinpointed as a pivotal project contributing to the EU's overall security of gas supply, the Chiren expansion is also important in light of Bulgaria's efforts to achieve energy diversification by adding LNG to its energy mix, Malinov noted.
As of September 11, Bulgaria's gas storage facility is 67% full, Malinov also said, adding that at the current injection rate, Chiren is likely to achieve the EU-stipulated storage target of 80% by the end of October.
At its current capacity, prior to the expansion, Chiren could provide if necessary natural gas at a maximum rate of about 15-16% of its total capacity, or between 4 and 4.5 bcm per day.
Bulgaria's use of natural gas dropped to a record low of about 4 million bcm per day in the summer compared to between 6 and 8 million bcm per day in the summer months of the past ten years. Average winter consumption amounts to between 12 and 14 million bcm per day, with peak winter demand of 17-18 bcm per day.
Bulgartransgaz has completed all necessary work to connect the Greece-Bulgaria interconnector to its network and is ready to take delivery of additional natural gas via the pipeline from October 1, Malinov also noted.
(1 euro = 1.95583 levs)