ENGLISH

DESFA supports natgas store at empty oil field

Δημοσίευση 4 Δεκεμβρίου 2010, 11:21 / Ανανεώθηκε 27 Ιουνίου 2013, 14:55
DESFA supports natgas store  at empty oil field
Facebook Twitter Whatsapp

Greece's Hellenic Gas Transmission System Operator (DESFA) on Friday said it was in favour of a proposal to convert the exhausted South Kavala deposit in the Prinos oil field into a subterranean storage facility for natural gas.

Greece's Hellenic Gas Transmission System Operator (DESFA) on Friday said it was in favour of a proposal to convert the exhausted South Kavala deposit in the Prinos oil field into a subterranean storage facility for natural gas.

The proposal for the subterranean storage facility was submitted to Greece's environment, energy and climate change ministry by Greece's Public Gas Corporation (DEPA) and the company Aegean Energy, which holds a licence from the Greek state to drill for oil at Prinos.

DESFA stressed, however, that the investment and management of the storage facility should be managed by itself, or by a consortium in which it holds a minimum 51 percent share so that European Union rules on competition are not flouted.

According to studies that have been carried out, the S. Kavala site can store up to one billion cubic metres of gas and supply up to four million cubic metres of gas to the network per day (or 40 percent of daily consumption in the country) for a period of 90 days.

According to DESFA, the storage facility will greatly contribute to energy security in Greece and in neighbouring countries linked to its gas network.

DESFA's positions on the proposed investment were that the South Kavala underground space was public property and its conversion into a natural gas storage facility created added value that belonged to the state and not the private company holding a concession to use the specific space for other purposes.

It also noted that DEPA was a commercial enterprise in the natgas market and its presence in the consortium without holding a tender by simply as an administrative decision of the state created conditions of discriminatory treatment against other companies operating in the natgas market by reinforcing its dominant position, in contravention of Community rules.

For this reason, the investment and subsequent management of the storage facility could be carried out either by DESFA on its own or by a consortium in which DESFA held a majority share. For the remaining members of any consortium thus formed, it said that these could include the company now holding the licence to drill and the rest private investors chosen through an international tender.

The environment ministry has set up a committee to examine the various alternative solutions proposed for the investment and make a recommendation to the ministry leadership.