Gas market news
1 July 2016
Dambořice Underground Gas Storage Is Put into Operation
Dambořice underground gas storage
Today the Dambořice underground gas storage (UGS) was put into service near the town of Hodonin in the South Moravian Region of the Czech Republic. The storage is operated by Moravia Gas Storage a.s., joint venture company of MND and Gazprom Export. The active capacity of the storage is 456 million cubic meters; withdrawal capacity — 7.6 million cubic meters per day; injection capacity — 4.6 million cubic meters per day. Dambořice UGS capacity represents about 12% of the gas storage market of the Czech Republic.
“This is the project that has all the opportunities to actively contribute to achieving goals of strengthening interconnections between the markets. The project gained particular importance in view of the implementation of the Nord Stream—2 project which will provide for uninterruptable supplies of additional gas volumes to Europe” — said Deputy Chairman of the Management Committee of Gazprom Alexander Medvedev.
“Dambořice UGS will become one of the crucial elements to provide secure supplies of Russian natural gas to our European consumers. The unique location of this gas storage will allow to guarantee reliable gas supplies not only to the Czech Republic, but also to Austria and Germany” — underlined Director General of Gazprom Export LLC Elena Burmistrova.
“I’m glad that our partnership with Gazprom and Gazprom Export has allowed us to build a state-of-the art gas storage site in the Czech Republic. The facility is situated in a very good strategic location and offers excellent prospects from the business viewpoint. Likewise, we value highly that Gazprom will be the most important client of the Dambořice gas storage facility,” said KKCG founder and owner and MND owner Karel Komárek.
Dambořice UGS is built in the reservoirs of the depleted oil field. The implementation of the Dambořice UGS project dates back to March 20, 2013, when the joint venture agreement was signed by Gazprom Export LLC and MND a.s. Moravia Gas Storage a.s. company was set up to build and exploit the UGS . Construction works started in May 2014. 90% of the UGS’s capacity was booked by Gazprom Export LLC in auction.