Contractor selected for feasibility study of Balkan gas hub

Oil&Gas Materials 16 March 2018 09:50 (UTC +04:00)

Baku, Azerbaijan, March 16

By Leman Zeynalova – Trend:

A contract for the feasibility study for the Balkan gas hub has been signed between Bulgaria’s Bulgartransgaz EAD and the selected consortium, said a message on Bulgartransgaz EAD’s website.

The contract was signed in the presence of Bulgaria’s Energy Minister Temenuzhka Petkova.

“The feasibility study will assess in details the trade and technical viability of the project, determine the exact business model for its realization and allow the finalization of the regulatory framework and structure for its financing,” said the message.

The study will analyze the target markets, the demand and offer of natural gas and a road map for the realization of the project will be developed, according to the company.

Last year the European Commission approved the funding of the feasibility study for the Balkan gas hub project, amounting to 920,500 euros (half of the estimated total value) under the Connecting Europe Facility.

The total amount of the contract signed is 2,327,437 Bulgarian levs.

Following a public procurement, the Bulgarian-Swiss Consortium DZZD AF-EMG Consult was selected as a contractor.

Within 40 calendar days of contract signing, the Consortium will present an interim report on the activities carried out and the comprehensive study will be prepared within 110 days.

It was earlier reported that Bulgartransgaz EAD has started talks with Azerbaijan’s state oil company SOCAR on the volume of gas supplies to Balkan hub, according to Bulgaria’s Deputy Energy Minister Zhecho Stankov.

“The Bulgarian company is in talks on using the part of the free volumes of gas from Azerbaijan’s Shah Deniz 2. This is about 3 billion cubic meters from the second phase of development of the field,” added Stankov.


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