Bulgartransgaz EAD has officially launched a public procurement process to implement the staged expansion of the Chiren Underground Gas Storage (UGS) facility, a project of strategic importance for bolstering energy security and enhancing competition in the natural gas market in Bulgaria and the wider South East Europe region.

Source: Bulgartransgaz

The open procurement procedure involves comprehensive activities, including the investment design, material and equipment procurement, and the drilling of three exploitation wells (E-76, E-77, and E-79). These wells will be connected to a new compressor station at Chiren UGS and commissioned upon completion. An option for three additional wells, selected from wells E-74, E-75, E-78, E-80, E-81, E-82, and E-83, is also included in the project scope, depending on the productivity of the initial wells.

The estimated value of the procurement, including the optional wells, amounts to BGN 109.47 million (VAT excluded), with each stage valued at BGN 54.74 million. Market consultations have guided these cost projections.

A grant agreement of EUR 77.91 million has been signed between Bulgartransgaz EAD and the European Climate, Infrastructure and Environment Executive Agency (CINEA) to support the project. Following delays, an agreement to extend the project's term until the end of 2027 has been reached.

The expansion will increase operational safety, boost storage capacity, and align with regional LNG terminal developments and gas transmission infrastructure plans. It is set to strengthen Bulgaria’s energy position and contribute to a more competitive natural gas market across South East Europe.

As part of the project, significant milestones have already been achieved. The gas pipeline connecting Chiren UGS to Bulgartransgaz’s transmission system in Butan village was completed in November 2024. Additionally, the new compressor station and auxiliary facilities were completed in December 2024, with commissioning expected by the first quarter of 2025.