Three potential investors have expressed interest in the first non-binding round of the tender for the development and operation of underground gas storage in the depleted natural gas field South Kavala, Greek privatization fund TAIPED announced.
According to the statement from TAIPED, three interested parties are: consortium of China Machinery Engineering Co. (CMEC) and Maison Group, consortium DESFA – GEK Terna and Energean Oil & Gas. The offers will now be evaluated and the list of participants progressing to a second, binding round of the tender will be announced at a later date. In late August, TAIPED decided to extend the first round tender deadline from initial 31 August to 30 September. TAIPED provided no explanation for the reason of this extension. The tender has been launched in late June. 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. According to estimates, underground gas storage facility will cost about 240 million euros and will provide annual transmission capacity of 360 million cubic meters, with a potential to be doubled. Greece has launched a balancing platform for natural gas in 2018 and is currently planning its development into an organized gas market envisioning the country’s establishment as a regional commercial gas hub. New gas entry points, besides Trans-Adriatic (TAP) pipeline, will be needed to secure sufficient gas quantities and flexibility during this transition, and the role played by the Kavala underground storage during this stage will be vital.
