Bulgartransgaz EAD launches public procurement for exploitation drillings of the Chiren storage facility

Bulgartransgaz EAD launches a public procurement for the implementation of the phased expansion of the Chiren underground gas storage facility. The project is of strategic importance for improving energy security and increasing competition and liquidity on the natural gas market in Bulgaria and the region of Southeastern Europe.

The announced open procedure includes investment design activities, supply of the necessary materials and equipment, drilling of three exploitation drillings ("Drill E-76"; "Drill E-77"; "Drill E-79") of the Chiren UGS, construction of the adjacent pipelines to the new Chiren compressor station and their commissioning.

The scope of the public procurement provides for the possibility of implementing three other exploitation wells. In the event that this option is adopted, investment design, delivery of the necessary materials and equipment, laying, construction of the adjacent loops to the new CS "Chiren" and their commissioning should be carried out for them. The wells that will be implemented in the event of awarding the option are determined between wells E-74, E-75, E-78, E-80, E-81, E-82 and E-83 in the repository.

The assessment of the award of the option will be made based on the productivity of the first two wells completed from the subject of the procurement and after integrating the data obtained from these wells into the available 3D model of the repository, with the aim of further upgrading it. This would provide an opportunity for the implementation of more wells within the framework of one public procurement in order to optimize the terms and costs.

The construction of the facilities will create a technical opportunity for a phased expansion of the Chiren storage facility, increasing its operational safety and increasing its capacity capabilities.

The estimated value of the public procurement, including the option, is 109,472,000.00 (one hundred and nine million four hundred and seventy-two thousand) BGN excluding VAT, of which:

- the estimated value of the procurement in the part thereof related to the implementation of the stages "Drilling E-76", "Drilling E-77" and "Drilling E-79" is 54,736,000.00 (fifty-four million seven hundred and thirty-six thousand) BGN excluding VAT.

- The estimated value of the option is 54,736,000.00 (fifty-four million seven hundred and thirty-six thousand) BGN excluding VAT.

The estimated value of the order was determined based on the market consultations conducted, detailed information about which is published at https://app.eop.bg/today/443892.

A grant agreement has been concluded between Bulgartransgaz EAD and the European Climate, Infrastructure and Environment Executive Agency (CINEA) for the financing of the project for the expansion of the capacity of the Chiren UGS in the amount of up to EUR 77,910,018. Bulgartransgaz EAD has notified CINEA of the circumstances that have occurred, which have led to a delay in the implementation of the project, and an agreement in principle has been reached between the parties to amend the term of the agreement until the end of 2027.

The expansion of the capacity of the only gas storage facility in our country is among the leading energy projects in the region. Its implementation will contribute to ensuring energy security and increasing competition on the gas market in Bulgaria and in Southeastern Europe. The project is in full synergy with the existing and planned new LNG terminals in the region, as well as with the plans for the expansion of the gas transmission infrastructure.

We remind you that the project is being implemented in three directions - design and construction of a new compressor station, underground facilities and a gas transmission pipeline. The compressor station and its associated technical facilities were adopted at the end of December 2024 with the Statutory Act No. 15, comprehensive tests are being conducted and will be put into operation by the end of the first quarter of 2025. The gas transmission pipeline connecting the Chiren UGS with the existing gas transmission system of Bulgartransgaz EAD in the area of ​​the village of Butan was built and put into operation at the end of November 2024.

The deadline for submitting bids for participation in the public procurement is until 23:59 on 25.02.2025.