site.btaEC Approves EUR 16 Mln Measure for Expanding Chiren Gas Storage Facility

The European Commission approved, in accordance with EU state aid rules, a Bulgarian measure in the amount of EUR 16 million to support the expansion of the Bulgartransgaz gas storage facility in Chiren, said the EC on Tuesday.

Bulgartransgaz will invest around EUR 285 million to expand the capacity of the underground gas storage facility in Chiren, which is the only natural gas storage facility in Bulgaria. Storage capacity is expected to grow from 550 million to 1 billion cubic meters. The capacity to withdraw and supply natural gas to the network will also be increased.

Bulgaria notified the EC of its plans to support the Bulgartransgaz’s investment of with a 9-year public guarantee on the loan to finance the measure in the amount of EUR 16 million. The aim is to ensure security of gas supply, to increase competition in the gas market, including through greater integration of the facility to the grid, and to promote gas trade in the region.

The expansion of the underground Chiren gas storage facility is a Projects of Common Interest (PCIs) included in the fifth list of PCIs. The PCIs aim to complete the European internal energy market to help the EU achieve its energy and climate goals.

The EC assessed the scheme under TFEU Article 107(3)(c), which allows Member States to support the development of certain economic activities under certain conditions, and Guidelines on State aid for climate, environmental protection and energy (CEEAG). The EC found that the Bulgarian scheme was necessary and appropriate to facilitate Bulgartransgaz's investment in its natural gas storage facility. The Commission also concluded that the scheme is proportionate as the aid will be limited to the minimum necessary to guarantee the investment in the facility and will not have undue negative effects on EU competition and trade. On this basis, the EC approved the measure under EU state aid rules.

The non-confidential version of the decision will be submitted under the number SA.106120 in the state aid register on the EC's competition website, once any confidentiality issues have been resolved, the Commission said in a statement.