Storengy’s Kavala UGS tender exit prompts formation changes

A decision by France’s Storengy (Engie) to not participate in a forthcoming tender offering an underground natural gas storage facility (UGS) license for the almost depleted South Kavala offshore natural gas field in the country’s north has prompted a domino effect of formation changes by groups of investors planning to bid.

GEK TERNA appears to have formed an association with gas grid operator DESFA for the tender after having previously agreed to join forces with Energean Oil & Gas and Storengy.

Energean Oil & Gas, holding a license for the virtually depleted South Kavala field, has not remained an onlooker. The company has also found a partner, believed to be domestic, from the construction sector, according to sources.

To date, Energean Oil & Gas has held talks with three major groups, Mytilineos, AVAX and Aktor, the same sources added.

A Chinese investor is also believed to be interested in the South Kavala UGS tender, staged by privatization fund TAIPED, but will not link up with any partners.

The tender is offering rights for the use, development and exploitation of the virtually depleted offshore natural gas field south of Kavala as a UGS facility for a period of up to 50 years.

Participants must submit first-round, non-binding offers by October 19 following three deadline extensions.

Solid bidder turnout for DEDA east Macedonia, Thrace gas network tenders

Five construction companies and one consortium have taken part in the first two tenders staged by gas distributor DEDA for the development of gas distribution networks in Xanthi/Drama and Alexandroupoli/Komotini, respectively, in Greece’s north and northeast.

Key Greek construction firms such as Aktor, Avax and Intracom were among the bidders, sources informed. Newcomers and older companies also took part in the tenders, totaling 33.4 million euros, including Edil Hellas, Ergo ATE and Vermion ATEE-Sourla Bros ATEBE.

The level of participation on the two tenders was described as satisfactory by DEDA’s managing director Marios Tsakas and a vote of confidence for the gas company’s ambitious plans to broaden the coverage of networks in provincial Greece.

DEDA covers all parts of Greece not represented by fellow DEPA Infrastructure subsidiaries EDA Attiki, covering the wider Athens area, and EDA THES, covering Thessaloniki and Thessaly.

Project contracts with winning bidders could be signed by the end of the year so that construction work of the new networks can begin early in 2021 in all four provincial cities, sources said.

Avax, Aktor, Ergo ATE, Edil Hellas, Vermion ATEE-Sourla Bros ATEBE and Intracom took part in the DEDA tender for the development of gas networks in the Xanthi and Drama areas, budgeted at 17.1 million euros.

Avax, Aktor, Ergo ATE, Edil Hellas and Intracom also took part in the Alexandroupoli/Komotini tender, budgeted at 16.3 million euros.

The two regional projects are being funded by own funds, loans and business development funds for the east Macedonia and Thrace regions.

Gas distribution networks totaling at least 200 kilometers for 4,066 connections concerning all gas consumer categories by 2024 are planned for the Xanthi and Drama areas.

As for the Alexandroupoli and Komotini areas, the DEDA plan entails construction of gas distribution networks totaling 170 kilometers for at least 5,279 connections by 2024.

DEDA plans to launch new tenders next month for construction of gas networks in Orestiada and Kavala, northern Greece, sources said.

Overall, the new gas distribution networks planned by DEDA in the six provincial cities are budgeted at 56.6 million euros, plus 24% VAT, and will provide a total of 496,000 kilometers of mid and low-pressure gas supply lines for at least 15,000 consumer connections of all categories.

DEDA is also planning tenders next month for gas network projects in central Greece and the central Macedonia region.

PPC, IPTO see big potential in broadband development PPPs

Power utility PPC and power grid operator IPTO, both seeing enormous potential in the further utilization of their thousands of kilometers of distribution and electricity transmission networks covering the entire country, have emerged as contestants in a tender for a broadband network expansion project, one of Greece’s biggest Public Private Partnerships (PPPs) to date.

PPC and IPTO know well their existing nationwide infrastructure is a treasure whose potential is far from fully realized. Fiber optics and a large range of telephone and internet services can be added to this infrastructure.

The PPP tender is offering contracts for the development of ultra-fast broadband networks in seven parts of Greece that have not been included in investment plans shaped by telephony providers. The project is budgeted at 870 million euros.

Besides PPC and IPTO, three telecom companies, OTE, Vodafone and Wind, four construction firms, Terna Energy, Mytilineos, Intrakat and AVAX, as well as the Sultanate of Oman’s Oman Fiber Optic SAOC have emerged as first-round contenders for the tender.

Partnerships could be established between some of these ten participants, or with other investors who may be emerge later on.

According to the tender’s initial terms, bidders or bidding teams are entitled to be awarded up to three regions.