The European Commission (EC) approved 16 million euro aid aimed to support the expansion of the underground gas storage facility Chiren, operated by natural gas transmission system operator Bulgatransgaz.
The company plans to invest 285 million euros in expanding the capacity of the underground gas storage facility in Chiren, which is the only natural gas storage facility in Bulgaria. Storage capacity should increase from 550 million to 1 billion cubic meters. The capacity to withdraw and supply natural gas to the network will also be increased.
Bulgaria notified the EC of its plans to support Bulgartransgaz’ investment with a 9-year public guarantee on a loan to finance the measure in the amount of 16 million euros. The aim is to ensure security of gas supply, to increase competition in the gas market, including through greater integration of the facility into the network, and to promote gas trading in the region.
The expansion of the underground Chiren gas storage facility is included in the fifth list of Projects of Common Interest (PCI), which aims to complete the European internal energy market to help the EU achieve its energy and climate goals.
