The environment and energy ministry has signed a long-awaited ministerial decision for the development of an underground gas storage facility in the offshore South Kavala region through the transformation of a depleted natural gas field, an unprecedented venture in Greece.
The country, as a result of this project, situated 30km south of Kavala, will join the list of EU member states contributing to the continent’s underground gas storage capacity and energy security.
Deputy energy minister Gerassimos Thomas and the ministry’s secretary-general Alexandra Sdoukou have completed all preparations needed for the project’s operating framework.
The ministerial decision essentially outlines the legal terms concerning the facility’s operation, including licensing requirements for development and exploitation, sources informed.
RAE, the Regulatory Authority for Energy, needs to decide on the project’s WACC level, or minimum acceptable rate of return for investors, the sources added.
A total of 126 underground gas storage facilities operate in the EU, offering an overall capacity of approximately 80 billion cubic meters, recent data showed.
Internationally, a total of 642 underground gas storage facilities have been developed for an overall capacity of 333 billion cubic meters, approximately 11 percent of global gas consumption.