New deadline extension likely for South Kavala UGS tender

A tender being staged by privatization fund TAIPED for the almost depleted natural gas field of “South Kavala” in the Aegean Sea’s north, being offered for development and operation of a prospective underground natural gas storage facility (UGS) over a 50-year period, is in danger of ending without a result.

The tender expires tomorrow, following a four-month extension, but its final-round qualifiers do not appear likely to submit binding bids.

A fruitless tender for what is viewed as vital energy-sector infrastructure would blemish the government’s pre-election campaign, so a further deadline extension of a few months is possible for the procedure, launched in June, 2020.

If so, the tender’s two final-round qualifiers, Energean and a partnership bringing together gas grid operator DESFA and construction company GEK Terna, will have more time to evaluate the terms and conditions.

A 50 percent socialization rate set by RAE, the Regulatory Authority for Energy, concerning the project’s regulated tariffs has been deemed as unsatisfactory by the suitors and is the key factor subduing their interest.