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    Greece Gets Three Bids for Offshore Gas Storage


One offer came from Energean, the operator of the nearly-depleted field that is due to be converted into a storage facility.

by: Joe Murphy

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Greece Gets Three Bids for Offshore Gas Storage

Greece has received three initial bids to develop and operate an underground gas storage facility in the northern Aegean Sea, its privatisation agency Taiped said on October 20.

Expressions of interest (EoIs) were filed by China Machinery Engineering in partnership with Maison Group of the US, Greek gas grid operator Desfa with local conglomerate GEK Terna, and Mediterranean-focused producer Energean. The contract they are competing for covers the conversion of Energean's nearly-depleted South Kavala gas field into a storage facility and its operation for 50 years.

Preliminary plans suggest South Kavala could store up to 1bn m3 of gas, with a maximum injection rate of 5mn m3/day and a maximum extraction rate is 4mn m3/d. The plan is to connect the field with the Trans-Adriatic Pipeline (TAP) carrying Azeri gas to Europe via a 2-km pipeline from Energean's onshore processing plant. The scheme is listed as an EU project of common interest, which should enable it to tap EU funds and secure regulatory support.

Taiped earlier pushed back the deadline for EoIs from September 3o until October 19, without giving a reason for the delay.

Greece wants to establish gas storage capacity as it prepares to phase out coal-fired generation by 2030, replacing some of the retired capacity with gas-burning plants. The country is also set to become hub for regional gas supplies, with the launch of TAP later this year and a gas link with Bulgaria in 2021.

In addition, a final investment decision is due by year-end on a 5.5bn m3/year LNG import terminal in Alexandroupolis. The terminal will complement an existing one on the islet of Revithoussa.