Chiren underground gas storage expansion project has secured 78 million euros under the Connecting Europe Facility (CEF). It is the only natural gas project out of the five approved energy projects in Europe which was identified by the European Commission and received funding as a result of the EU Member States agreement, informs Bulgartransgaz.
The project envisages an increase in the active gas volume, up to one billion cubic metre (bcm).
“The availability of sufficient storage capacity in the region is of key importance for alternative natural gas suppliers, especially those of liquefied natural gas, as it provides flexibility in supplies’ management”, Bulgartransgaz quotes Executive Director, Mr Vladimir Malinov, in its press statement.
Chiren UGS expansion is in synergy with the LNG terminal project near Alexandroupolis, where Bulgartransgaz participates with 20 per cent of the share capital and with other company projects that aim at improving interconnectivity with neighbouring countries.
Storage capacity growth of Chiren UGS is expected to promote natural gas trade and improve market integration in Southeast Europe through competition enhancement and gas markets liquidity improvement in the region.
Only projects identified by the European Commission as projects of common interest (PCI) are eligible for CEF funding. Chiren UGS expansion has been consistently included in all PCI lists since 2017.