Bulgartransgaz EAD launched a public procurement implementing the staged expansion of Chiren underground gas storage facility. The project is of strategic importance for the improvement of the energy security and the increase of the competition and liquidity of the natural gas market in Bulgaria and the region of South East Europe.
The open procedure includes activities involved with the investment design, procurement of the necessary materials and equipment, drilling of three exploitation wells (Well Е-76; Well Е-77; Well Е-79) at Chiren UGS, construction of their adjacent gatherings to a new Chiren compressor station and their commissioning.
The scope of the public procurement provides for an opportunity for the realisation of another three exploitation wells. In the event that this option will be proceeded with, they will required the investment design, procurement of the necessary materials and equipment, drilling, construction of their adjacent gatherings to a new Chiren compressor station and their commissioning. The wells to be executed in the event of the award of the option shall be determined between wells Е-74, Е-75, Е-78, Е-80, Е-81, Е-82 and Е-83 of the storage facility.
The assessment of the award of the option shall be made according to the productivity of the first two completed wells of the procurement subject and after the integration of the data obtained from these wells into the available 3D model of the storage facility with a view to its further upgrade. That would ensure an opportunity to realise more wells within one public procurement to optimise the deadlines and the costs.
The construction of the facilities will create the technical possibility for the gradual expansion of the Chiren storage facility as it will increase its operational safety and boost its capacity.
The estimated value of the public procurement, including the option amounts to BGN 109 472 000,00 (one hundred and nine million four hundred and seventy-two thousand), VAT excluded, of which:
- the estimated value of the public procurement in its part related to the implementation of Stages Well Е-76, Well Е-77 and Well Е-79 in the tune of BGN 54 736 000.00 (fifty-four million seven hundred and thirty-six thousand), VAT excluded.
- The estimated value of the option amounts to BGN 54 736 000.00 (fifty-four million seven hundred and thirty-six thousand), VAT excluded.
The estimated value of the public procurement has been set on the basis of market consultations, detailed information of which is published at https://app.eop.bg/today/443892.
A Grant Agreement has been signed for the financing of the project for the expansion of Chiren UGS capacity by Bulgartransgaz EAD and the European Climate, Infrastructure and Environment Executive Agency (CINEA) totalling up to EUR 77 910 018. Bulgartransgaz EAD had notified CINEA about the circumstances that took place and resulted in the delay in the project realisation, and an agreement in principle was reached between the parties for the amendment of the term of the GA by the end of 2027.
The expansion of the capacity of the only gas storage in our country is among the leading energy projects in the region. The project realisation will contribute to guarantee the energy security and will increase competition on the gas market in Bulgaria and South East Europe. The project is in full synergy with the existing and planned new LNG terminals in the region as well as with the expansion plans of the gas transmission infrastructure.
It is recalled that the project shall be implemented in three directions - design and construction of a new compressor station, underground facilities and a transmission gas pipeline. The compressor station and the auxiliary technical equipment were accepted at the end of December 2024 by a Protocol of Findings, Standard Form 15, complex test are ongoing and will be commissioned by the end of the first quarter of 2025. The gas pipeline connecting Chiren UGS to the existing gas transmission system of Bulgartransgaz ЕАD in the area of Butan village has been built and operational at the end of November 2024.
The documentation for participation is published in CAIS EOP at: https://app.eop.bg/today/439998
The deadline for the submission of offers for participation in the open procedure is by 23:59 on 25 February 2025.