Greek Regulatory Authority for Energy (RAE) decided not to change the pricing framework for the future underground natural gas storage facility at the almost depleted South Kavala gasfield in the Aegean Sea’s north, thus enabling the project’s binding-bids stage to go ahead.
According to the tender’s latest timetable, binding bids should be submitted by the end of July. The tender is expected to be completed by the end of October.
According to the approved project’s pricing framework, 50 % of the underground gas storage facility’s development cost, budgeted at 314 million euros, will be guaranteed through regulated earnings. The project’s operator will need to retrieve the remainder either from the state or from other users of the facility.
Last April, TAIPED announced that a consortium of GEK-Terna and natural gas transmission system operator DESFA and Energean Oil & Gas as a sole bidder, have qualified for the second, binding round of a tender for the development and operation of underground gas storage in the depleted natural gas field South Kavala.
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 kilometers off the west coast of Thassos. The duration of the concession agreement will be up to 50 years. The conversion of the natural gas field South Kavala into an underground gas storage will be carried out by the concessionaire within a binding period to be determined in the concession agreement.
