"Bulgartransgaz" with a decisive move for the expansion of the gas storage in Chiren

The first decisive and real step for the expansion of the underground gas storage in Chiren from the current storage volume of 500 million cubic meters to 1 billion cubic meters has already been taken. "Bulgartransgaz" and the company under the law on obligations and contracts "Tech Energy Expansion" company signed a contract for the supply of the necessary materials and equipment, construction and commissioning of the "Capacity Expansion of the Chiren Gas Plant - Aboveground Part".

The project for the expansion of the Chiren gas storage facility is divided into three parts. This is also the first part of the public order. The total value of the contract with company under the law on obligations and contracts "Tech Energy Expansion" amounts to 297,777,777.29 (two hundred ninety-seven million seven hundred seventy-seven thousand seven hundred seventy-seven and 0.29) BGN excluding VAT. Activities under the contract are co-financed by the European Union through the Connecting Europe Facility.

In general, the expansion of the "Chiren" gas processing plant envisages a gradual increase in the capacity of the natural gas stored in the gas storage facility to 1 billion cubic meters, including an increase in the daily production capacity to 10 million cubic meters per day (now 3.8 million cubic meters) cubic m per day) and injection up to 8 million cubic m per day (now 3.2 million cubic m), explained the executive director of Bulgartransgaz, Vladimir Malinov. He reminded that the expansion of the gas storage in Chiren has been talked about since 2010, "and that's how this project came about."

As he explained, the increased storage capacity at Chiren LNG will guarantee the security of natural gas supplies and contribute to improving competition and access to natural gas from alternative sources. According to him, the project has an indisputable strategic importance for business, industry and people in Bulgaria and the countries of the region.

"The expansion of Chiren is in full synergy with the developing LNG terminal projects in the region, including Alexandroupolis, and the EU's ambition to increase the share of LNG in the energy mix," he stressed.

In particular, the signed contract stipulates that company under the law on obligations and contracts "Tech Energy Expansion" will build a compressor station, and the area on which it will be built has already been determined.

"Glavbolgarstroy has been building energy infrastructure in the country for more than 25 years. We will do our best to supply the highest technological equipment. We have never compromised on quality and we have never been late," noted Kalin Peshov, a member of the company's supervisory board. He was adamant that in two years the site will be ready.

"This project is important not only for the region, but also for the entire European Union," said the chairman of the International Advisory Board of Glavbolgarstroy and former European Commissioner Günther Verheugen. He emphasized the economic, ecological and political importance of the project for the expansion of the underground gas storage in Chiren, especially in view of the current situation. "We need to ensure security of supply, and nowadays gas and energy are being used as weapons and we need to reduce that influence," he said, noting the importance of storing but blue fuel. In his words, "The European Union is getting closer to building an energy union, and whether we like it or not, gas will be needed in the next two decades. That is exactly why the European Commission, in which I participated, supports such projects. I can only encourage and encourage the Bulgarian authorities to stimulate the use of gas," said Verheugen.

The underground gas storage facility in "Chiren" was built on the basis of a depleted gas condensate deposit discovered in 1963. After transformation, the facility began to function in 1974.

As already explained, the project for the expansion of the gas storage in Chiren is divided into three parts, and the remaining two public procurements are about to be completed.

The second such "Organizational planning, investment design, supply of the necessary materials and equipment, construction and commissioning of construction "Expansion of the capacity of UGS “Chiren" - drilling fund" is in the process of consideration.

At the moment, 24 production wells are operating on the territory, as well as a compressor station with a total installed capacity of 10 MW and other technical facilities necessary for the production and quality of the stored blue fuel. The expansion project in its second part envisages 10 new wells and 3 observation wells as the old ones will gradually be silenced, it became clear from the words of the executive director of the gas transmission operator. The commission is expected to rule on this public order as soon as possible. Until the completion of the second part, the new compressor station built, which will be equipped with new equipment provided by technological leaders Solar Turbines Europe and Honeywell, will be able to take over the work of the existing 24 wells.

As for the third part, or more precisely, public procurement, which envisages the construction of a gas pipeline to "Bhutan", it became clear from the words of Vladimir Malinov that there is a decision of the Supreme Court and obstacles to its implementation no longer exist. ("Investment design, supply of the necessary materials and equipment, construction and commissioning of an object: "Gas pipeline connecting the "Chiren" UGS with the existing gas transmission network of "Bulgartransgaz" EAD in the area of Butan village").

After the implementation of the overall activity, the outdated equipment, which is Russian for several decades and for which it is already difficult to provide the necessary maintenance parts, will be completely replaced by a modern new technological one.

The total value of the investment in the expansion of Chiren is about BGN 600 million. It is planned to complete the expansion of the storage facility by the end of 2024.

After the event, a working meeting was held with the managing director of Solar Turbines for Europe, Jack Plesha. The executive director of "Bulgartransgaz" EAD Vladimir Malinov emphasized that the successful cooperation of the Bulgarian gas transmission operator with the American company will continue. Their facilities operate on the territory of four compressor stations in our country.