Following the completion of an open procedure in accordance with Bulgarian and European legislation, Bulgartransgaz EAD and DZZD Tech Energy Expansion signed a contract for the supply of the necessary materials and equipment, construction and commissioning of “Expansion of Chiren UGS capacity - above-ground part”.
Mr. Günter Verheugen, former EU Commissioner for Enterprise and Industry, representatives of the technological leaders Solar Turbines Europe and Honeywell, Vratsa municipality and others attended the event.
The total value of the Contract with DZZD Tech Energy Expansion amounts to BGN 297,777,777.29 (two hundred ninety-seven million seven hundred seventy-seven thousand seven hundred seventy-seven point twenty-nine), VAT excluded. The contract 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 BGN 600 million. 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 bcm (currently 550 mcm), increase the daily withdrawal capacity up to 10 mcm/d and the injection capacity up to 8 mcm/d. Currently the maximum daily withdrawal capacity is 3.82 mcm/d, and the maximum daily injection capacity is 3.62 mcm/d.
Bulgartransgaz EAD Executive Director Mr. Vladimir Malinov said that the increased storage capacity in the Chiren UGS will ensure the security of natural gas supply and will contribute to enhance the competition and the 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.
According to the chairperson of the international board of Glavbolgarstroy, Mr. Verheugen, the project is of great political, economic, social and environmental importance for Europe.
The event was followed by a working meeting with the Managing Director of Solar Turbines Europe Mr. Jack Plescia. Bulgartransgaz EAD Executive Director Mr. Malinov emphasized that the successful cooperation of the Bulgarian gas transmission operator with the American company will continue. We remind that their facilities operate on the territory of four compressor stations in the country.
