An article unblocking a tender for an underground gas storage facility in the offshore South Kavala region, to be developed through the utilization of a depleted natural gas field, has been attached to a multi-bill submitted to parliament by the ministry of health.
The article empowers RAE, the Regulatory Authority for Energy, to recover part of the gas storage facility’s required revenue from the domestic market.
The proposed amendment clarifies and supplements the existing framework concerning the underground gas storage and regulatory, according to a report supporting this specific article.
The new regulation is considered appropriate and necessary as, unlike LNG facilities, there is no provision for the possibility of total or partial recovery of the required revenue, the report added.
Greece is the only EU member state without an underground gas storage facility despite the country’s considerable gas-fueled electricity generation, the report notes.
EU member states store at least 20 percent of annual gas consumption at underground gas storage facilities.
This amendment was needed by privatization fund TAIPED for its launch of the asset’s privatization procedure as investors want to know the framework details concerning pricing and revenue recovery ahead of bidding.