An underground gas storage facility planned to be developed from a depleted natural gas field in northern’s Greece’s offshore South Kavala region will cost approximately 240 million euros and offer a transmission capacity of 360 million Nm3 per year, with a potential to be doubled, according to RAE (Regulatory Authority for Energy) official Nektaria Karakatsani, who discussed the project at a recent conference.

However, details concerning the investment cost’s recovery remain unclear, it was noted.

The UGS project has already secured a place on the European Commission’s PCI list, offering EU financing support and favorable terms. The inclusion highlights the underground gas storage facility’s significance for Europe’s strategy aiming to unify energy markets.

The UGS will greatly reduce the threat of energy crises for Greece should inflowing gas supply happen to be irregular, she underlined.

Greece launched a balancing platform for natural gas on July 1 and is currently planning its development into an organized gas market envisioning the country’s establishment as a regional commercial gas hub.

New gas entry points, besides the TAP route, which is scheduled to be launched early in 2020, will be needed to secure sufficient gas quantities and flexibility during this transition, the RAE official pointed out, adding the role to be played by the Kavala UGS during this stage will be vital.