Energean Oil & Gas, currently exploiting oil reserves in Prinos, northern Greece, remains interested in utilizing a nearly depleted gas deposit in the “South Kavala” region, northern Greece, as an underground natural gas storage facility, company officials have reminded media. The company had submitted a request to authorities back in 2011.

Development of an underground natural gas storage facility would help serve the country’s interests to become a regional gas hub and also supplement other prospective energy projects such as the TAP (Trans Adriatic Pipeline), the IGB Greek-Bulgarian interconnector, and the floating LNG terminal in Alexandroupoli, northeastern Greece, company officials noted, while adding it would also play a key role for the country’s energy security.

It makes sense for the government to revise a production license granted to Energy Oil & Gas for the South Kavala deposit as one that permits storage, following a recent two-year extension granted to the company, officials noted. A ministerial decision is all that is needed, they added.

Development of the underground storage facility would reinforce the Greek market’s capacity and flexibility, and also create appropriate conditions that may establish Greece as an energy hub, Energean Oil & Gas supported.

The prospective storage capacity offered by the South Kavala deposit would cover the country’s needs for a period of ninety days, whereas the plan to upgrade the existing LNG terminal in Revythoussa, an islet in the Saronic Gulf, close to Athens, would cover just twelve to fifteen days, company officials said.

The South Kavala storage facility would also help cover storage requirements for the TAP pipeline and the IGB interconnector, thereby helping supply gas to Bulgaria and the wider southeast European region.

Ownership of the South Kavala deposit has been transferred to TAIPED, the State Privatization Fund. Its website notes that alternative ways of utilizing the nearly depleted natural gas deposits in South Kavala through the development of a natural gas storage facility “need to be re-examined.” Even so, the fund has yet to take any initiatives, prompting certain authorities to argue the deposit’s ownership transfer to TAIPED has hindered progress.