Following the completion of an open procedure in accordance with Bulgarian and European legislation, the natural gas transmission and storage system operator Bulgartransgaz and DZZD Tech Energy Expansion signed a contract for the supply of the necessary materials and equipment, construction and commissioning of the Expansion of Chiren UGS capacity – above-ground part.
The total value of the contract amounts to 297,7 million levs (152,1 million euros) and it is co-financed by the European Union through the Connecting Europe Facility.
The total amount of the investment related to the expansion of Chiren is about 600 million levs (306,7 million euros). Works on the storage facility expansion are envisaged to be completed by the end of 2024.
The project aims to increase the active gas volume up to 1 billion cubic metres (bcm) from the current 550 million cubic metres (mcm), increase the daily withdrawal capacity up to 10 mcm/day and the injection capacity up to 8 mcm/day. Currently, the maximum daily withdrawal capacity is 3.82 mcm/day and the maximum daily injection capacity is 3.62 mcm/day.
According to Bulgartransgaz Executive Director Vladimir Malinov, the increased storage capacity in the Chiren UGS will ensure the security of the natural gas supply and will contribute to enhancing the competition and access to natural gas from alternative sources. In his opinion, the project has clear strategic importance for the business, the industry and the households in Bulgaria and the countries in the region.
“The expansion of Chiren is in full synergy with the LNG terminals being developed in the region, including the LNG terminal near Alexandroupolis and the ambition of the EC to increase the LNG share in the energy mix,” highlighted Mr Malinov.
