DEPOGAZ Signs Works Contracts for PCI 6.20.7 Bilciuresti UGS
Company’s Most Valuable EU Co-financed Investment to Date
DEPOGAZ marks a new important milestone for the security of natural gas supply to Romania and South-East Europe, by concluding works contracts related to PCI Project 6.20.7 “Bilciuresti UGS – Daily withdrawal capacity increase – Modernization of the natural gas storage system infrastructure.”
The grant agreement for PCI Project 6.20.7 “Bilciuresti UGS – Daily withdrawal capacity increase – Modernization of the natural gas storage system infrastructure”, on the List 5 of the Projects of Common Interest of the European Union (EU), was signed in May 2023. In December 2023, the technical design services were completed, and recently – on December 2, 2024, the signing of the works contracts for the implementation of this project took place.
The investment co-financed by the European Union amounts to €120 million, of which €38 million is provided by the European Climate, Infrastructure and Environment Executive Agency.
The DEPOGAZ management team, led by the General Manager Vasile Carstea, signed five contractual agreements for works related to the mentioned project, as follows:
- Contractual agreement for works related to PCI 6.20.7 Bilciuresti Underground Gas Storage “Daily Withdrawal Capacity Increase – Bilciuresti UGS” – works for “Increasing the daily gas withdrawal capacity in Bilciuresti Storage Facility” – Lot 1 “Modernization of wells groups” with the Association INSPET (Leader) – ROCONSULT TECH (Associate) – HABAU (Associate), with a value of RON 217,221,536.36.
- Contractual agreement for works related to PCI 6.20.7 Bilciuresti Underground Gas Storage “Daily Withdrawal Capacity Increase – Bilciuresti UGS” Works for “Increasing the daily gas withdrawal capacity in Bilciurești Storage Facility” – Lot 2 “Modernization of wells” with the Association FORAJ SONDE VIDELE (Leader) – DEVELTOR (Associate), with a value of RON 249,772,588.56.
- Contractual agreement for works related to PCI 6.20.7 Bilciuresti Underground Gas Storage “Daily Withdrawal Capacity Increase – Bilciuresti UGS” Works for “Increasing the daily gas withdrawal capacity in Bilciuresti Storage Facility” – Lot 3 “Injection/withdrawal gathering pipeline DN600 PN150 Butimanu – Bilciuresti” with the Association INSPET (Leader) – ROCONSULT TECH (Associate) – HABAU (Associate), with a value of RON 67,947,201.65.
- Contractual agreement for works related to PCI 6.20.7 Bilciuresti Underground Gas Storage “Daily Withdrawal Capacity Increase – Bilciuresti UGS” Works for “Increasing the daily gas withdrawal capacity in Bilciuresti Storage Facility” – Lot 4 “Cooling system” with the Association SUTECH (Leader) – BAT MEDIAS (Associate), with a value of RON 45,394,369.70.
- Contractual agreement for works related to PCI 6.20.7 Bilciuresti Underground Gas Storage “Daily Withdrawal Capacity Increase – Bilciuresti UGS” – works for “Increasing the daily gas withdrawal capacity in Bilciuresti Storage Facility” – Lot 5 “Digitalization of the gas storage process in the Bilciuresti Storage Facility” with the Association ROCONSULT TECH (Leader) – INSPET (Associate), with a value of RON 15,348,149.17.
The integrated approach is the second stage of the investment program which foresees to increase the total active storage capacity by 108 million Scm/cycle to 1418 million Scm/cycle and to increase the daily withdrawal capacity by 40% to 20 million Scm/day. The project will contribute to increasing the daily withdrawal capacity from storage facilities, at national level, by about 20%, with effects in reducing congestion at market level, offering the possibility of better management of natural gas resources, especially in the event of disruptive supply scenarios, but also to improving the flexibility of gas storage activity in South-East Europe, stimulating and accelerating the development of newly discovered resources, both offshore and onshore, in Romania.
“This project is of particular significance for increasing the security of natural gas supply to Romania and South-East Europe by developing and diversifying sources, ensuring greater energy independence and covering the risks of interruptions in the flow during peak consumption periods. Just as all the projects implemented so far by DEPOGAZ have proven their validity, this project will confirm that the quality factor, at the highest level, is paramount,” the General Manager of DEPOGAZ stated.
After almost 40 years of career, Vasile Carstea is committed, together with his team, to contribute to the successful realization of this project of national importance, which highlights the experience and technical knowledge of Romanian specialists in the energy field.
About the Project PCI 6.20.7 “Bilciuresti UGS – Daily withdrawal capacity increase – Modernization of the natural gas storage system infrastructure”
The project is being realized within the largest underground gas storage facility in Romania, the Bilciuresti UGS, and includes two phases, being developed in stages, depending on the sources of financing. Thus, Phase I, with a total value of €33.6 million, developed with own sources, was already completed in the first half of 2024.
DEPOGAZ carried out the following modernization works at the Bilciuresti UGS:
- Modernization works for the drying station group 57 Bilciuresti, worth €2.3 million.
- Modernization works for the drying station group 101 Bilciuresti, worth €2.1 million.
- Also, the construction of a new drying station at group 145 Bilciuresti, as well as reconfiguration and modernization of the technological installations in the storage facility – €7.5 million.
- Drilling works for four new wells, worth €10.4 million, and works for the execution of the surface technological installations related to the four new wells, worth a total of €5.1 million, were carried out.
- The technological installations in the Butimanu compressor station were modernized, the works amounting to approx. €3.7 million, and the fiscal gas metering system in the Bilciuresti storage, an investment of €2.5 million.
Phase II, worth approx. €123 million, includes well modernization works, construction of 150 bar gathering pipeline, modernization of the storage group installations, modernization of the cooling system and digitalization of the natural gas storage process.
PCI 6.20.7 has been selected for a European grant through the CEF Energy 2022, amounting to EUR 37,962,111.95, for the execution works of phase II of the project.
According to the current schedule, Phase II works will be completed in 2027.
