UGS Chiren Expansion
TransportBulgaria
Bulgaria
The project for Chiren UGS expansion aims, on one hand, to create conditions that guarantee the security of supply of natural gas for Bulgaria and the countries of the region.
On the other hand, the Chiren UGS aims to develop as a commercial gas storage on an interconnected regional and pan-European market, as Chiren UGS is an integral part of the regional gas system consisting of interconnections, LNG terminals and storage facilities.
The implementation of the project for Expansion of the capacity of Chiren UGS shall lead to:
- Ensuring security of supply;
- Expanding the use of LNG and pipeline gas from alternative sources;
- Increased storage capacity in the context of increasing transmission capacities to neighbouring countries;
- Increasing market integration;
- Stimulation of market competition;
- Promoting gas trade in the region;
- Contribution to the implementation of the energy transition;
- Contribution to emissions reduction.
Chiren UGS is the only gas storage on the territory of Bulgaria. It is a key instrument for the functioning of the gas market in Bulgaria, covering seasonal fluctuations in natural gas consumption in the country. The project for its expansion will secure the necessary flexibility and efficiency in terms of supply management and will facilitate the successful entering on the gas market from alternative sources, especially LNG.
The project for Chiren UGS expansion envisages a capacity increase in stages of the only gas storage on the territory of Bulgaria in order to allow larger gas volumes stored, increased gas reservoir pressure and higher daily average withdrawal and injection rates. The project provides for increase of the working gas volume up to 1 bcm and increase of the withdrawal and injection rates up to 8-10 mcm/day.
Achieving these goals will be possible through the construction of 10 new high-performance production wells and 3 new observation wells, as well as the construction of the necessary above-ground facilities and infrastructure.
The forthcoming work on the expansion of Chiren UGS is conditionally divided into three directions:
- construction of above-ground facilities;
- construction of underground facilities;
- construction of a new high-pressure pipeline connecting the UGS with the existing gas transmission infrastructure.
The conduction of surveys has been finalized in the beginning of 2021. Currently the project is at the stage of implementation including activities on: Design and issuance of permits;Acquisition of land; Conducting of public procurements for design, supplies,construction and commissioning.
- 2024Completed
The project of Chiren UGS expansion is co-funded under the Connecting Europe Facility (CEF) for the conduct of 3D seismic surveys, part of the preparatory phase of the project. The amount of the grant according to the signed Grant agreement is 50% of the project cost - up to EUR 3 900 000. The contract for the 3D seismic surveys was fulfilled by the selected contractor in the beginning of 2021. The overall implementation of the Grant Agreement is in the process of approval by the financial institution CINEA.
In January 2022, the EC announced its decision to allocate nearly € 78 million through the Connecting Europe Facility (CEF) for supplies and construction activities for the expansion of the Chiren UGS.
secured