Greek, Chinese companies interested in underground gas storage in Kavala – New Europe

A platform of Energean in Kavala.

Three parties have expressed interest for the concession of the use, development and operation of an underground natural gas storage facility (UGS) in the almost depleted South Kavala natural gas reservoir, the Hellenic Republic Asset Development Fund (HRADF) said on October 19.

The three interested parties are in alphabetical order: China Machinery Engineering Company (CMEC) – Maison Group, Greek national natural gas transmission operator DESFA – Gek Terna business group in Greece and Greece’s Energean Oil & Gas.

The UGS South Kavala 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.

“The investment for the underground natural gas storage of Kavala is important for the energy security of the country,” Greece’s Environment and Energy Minister Kostis Hatzidakis said. “Its realisation, in addition to any development benefit for the region, will contribute to the emergence of Greece as an international energy hub. The Ministry of Environment and Energy will closely monitor the progress of the relevant tender in order to complete it as soon as possible,” he said.

HRADF said its advisors will evaluate the expressions of interest from the 3 groups and submit to the Fund’s Board of Directors their recommendation regarding the candidates that qualify for the binding offers phase.

The almost depleted 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 kilometres off the west coast of Thassos.

The duration of the concession agreement will be up to 50 years following the licensing of the UGS in South Kavala. The conversion of the natural gas field “South Kavala” into a UGS will be carried out by the concessionaire within a binding period to be determined in the concession agreement.

Source: Greek, Chinese companies interested in underground gas storage in Kavala | New Europe