The increase in the capacity of the gas storage facility in Chiren starts by the end of this year

The Chiren underground gas storage expansion project is on schedule and part of the new infrastructure is scheduled to be commissioned by the end of 2024, which will allow the gradual increase in storage capacity to begin as early as the next pumping season. This was said by the Acting Minister of Energy, Vladimir Malinov, during his hearing in the Parliament, BTA reported. He recalled that it is planned to increase the storage capacity from 550 million cubic meters to 1 billion cubic meters of gas, as well as increase the extraction and injection capacity to 8-10 million cubic meters on a daily basis. The project is in full synergy with the existing and planned new LNG terminals in Southeast Europe, as well as the plans to expand the gas transmission infrastructure in the region.

The official minister explained that the increased capacity of the gas storage facility in Chiren will not only provide an additional reserve in case of problems with natural gas supplies, but will also help to successfully enter the gas market from alternative sources. He added that this is especially true for the supply of liquefied natural gas in the region.

In connection with Block 1-21 Khan Asparuh, Malinov announced that he had authorized Total Energy to transfer its share of 57 percent of the rights and obligations arising from the exploration permit to OMV Offshore Bulgaria, thus OMV becomes the full holder of the exploration concession. In addition, the term of the permission to search and explore for oil and natural gas in this block is extended by 23 months as a result of a delay caused by force majeure. "Extending the term of the permit by almost 2 years will allow OMV to continue with exploration activities," said Vladimir Malinov. He added that on June 27 of this year, he signed the relevant additional agreements with the representatives of both "Total Energy" and "OMV", and the term of the permit was extended by 23 months, as the holder of the concession is now "OMV".

The holder of the permit undertakes, within one month from the entry into force of the agreement, to submit to the Minister of the Environment and Waters a complete work project for this period, as well as an annual program. In this regard, after the signing of the additional agreement, Malinov set a deadline of July 9 this year for the working group, which had to carry out a legal, technical, tax and financial-economic analysis with a view to the possible acquisition by the Bulgarian Energy Holding (BEH) of up to 20 percent of the rights and obligations under the prospecting and exploration permit. The working group has provided a report stating that by July 31, BEH should propose an update of the expertise on the oil and gas potential of the "1-21 Khan Asparuh" block, which was prepared by the academic team of the University of Mining and Geology, but under the condition that "OMV Offshore Bulgaria" provided additional documents. By July 31, BEH will commission another financial and economic analysis with the assistance of an external financial consultant, based on the detailed work program provided by OMV. Thirdly, after updating the expertise on the oil and gas prospective block "1-21 Khan Asparuh" and preparing a financial and economic analysis, BEH will assign a legal and tax analysis to an external consultant. The proposals of the working group have been approved by the Acting Minister of Energy.

The official minister also commented on the subject of the Vertical Gas Corridor, which should be put into operation in the first quarter of 2026. He pointed out that all procedures and public procurements under it on Bulgarian territory have been concluded.

Vladimir Malinov assured that a sufficient amount of gas has been secured for the new winter season. Natural gas is provided under the supply contract from Azerbaijan, the gas storage facility in Chiren, as well as quantities that are stored in Turkey in connection with the agreement with the Turkish company Botash. He pointed out that more than 2 million megawatt hours of natural gas, owned by Bulgargaz, are currently stored in Turkey.