Bulgaria, Greece sign agreement on storage, LNG

The government of Bulgaria yesterday approved an agreement that will give Greek firms access to Bulgarian gas storage facilities, and in return give Bulgarian firms corresponding access to Greek LNG facilities.

Under EU law, any country that does not have gas storage facilities of its own must hold a strategic reserve equal to at least 15pc of its annual consumption in another EU country.

Under the agreement, one or more Greek suppliers will be able to register for use of the Bulgarian transmission system, and in this way gain the ability to reserve space at Bulgaria's Chiren storage facility for a maximum total storage volume of 0.7TWh, national news agency BTA said. Chiren's total working capacity is 5.8TWh.

In turn, slots and storage capacity as well as corresponding regasification capacity from terminals in Greece can be reserved by one or more Bulgarian supplier. They will use LNG for direct supply to consumers in Bulgaria for a maximum total annual regasification capacity of 2TWh, BTA said. Bulgaria has already reserved 1bn m³/yr of capacity at Greece's Alexandroupolis terminal, due to be commissioned in late 2023.

The agreement will last for one year and will enter into force once ratified by the Bulgarian parliament, BTA said.

By Brendan A'Hearn