Greek producer Energean has won a concession to explore two blocks in the Adriatic Sea, offshore Montenegro and near the median line with Greece. The deal will become valid after approval by the Montenegrin parliament.
The west side of the Adriatic has proven to be a particularly productive area for over 50 years, benefiting Italy and Croatia: the former with oil and gas and the latter with gas.
But the opposite coast of the Adriatic essentially remains under-explored despite hydrocarbon potential. Over the past 18 months Energean has been implementing an exploration program in the Ioannina and Katakolo areas on the west side of Greece, south of the Montenegro offshore blocks, and has gained insight into the wider region’s prospects, the company said.
“We also strongly believe that western Greece has the same geology as the eastern Adriatic and has a significant potential for exploration,” said company CEO Mathios Rigas.
The company sees potential for Greece to secure its energy supply by setting up underground gas storages. It has proposed to the Greek government to convert the almost depleted gas field of South Kavala into the first UGS, which will be at the crossroads of Trans Adriatic pipeline and Interconnector Greece-Bulgaria and have the ability to store up to 1bn m³.
“This will provide security of supply for the country as well as strengthen its strategic position in the wider area”, Energean said.
According to the company, development of the UGS facility would reinforce the Greek market’s capacity and flexibility and create appropriate conditions that may establish Greece as an energy hub.