Energean Oil and Gas has signed on initial agreement with Italy?s Edison to jointly turn an empty undersea natural gas reserve in northern Greece into a storage unit, a source from the Greek company said on Friday.
?A Memorandum of Understanding has been signed with Edison. Edison has technical know how from its involvement in five underground natural gas reserves in Italy,? an Energean company source told Kathimerini English Edition on the condition of anonymity.
Over the next eight months, the two companies will complete eight million euros worth of studies on the project that has an initial budget of 400 million euros, the source added.
Energean announced last year plans to turn an empty undersea reservoir off northern Greece’s Kavala into the country?s largest natural gas storage facility able to store 1 billion cubic meters, enough to cover half of Greece?s natural gas needs for 90 days.
?As to how the cooperation with Edison works out will depend on the findings of the studies and the feasibility of the project,? the source added.
Energean is Greece?s only oil and natural gas exploration company, producing some 3,000 barrels of oil per day.
Edison helps manage the Italy-Turkey-Greece Interconnector, set for completion in 2017, along with Greek natural gas monopoly DEPA. It also has a joint venture with the country?s largest petrol refinery Hellenic Petroleum.