Georgian Government Approves Frontera for Mtsare Khevi Pipeline

Georgia-focused Frontera Resources has announced today that it has received approval from the Georgian government to install a pipeline on the Mtsare Khevi field.

The pipeline, which will be 8 kilometres long when completed, will enable the company to transport gas from the field. The company had last year said that it expected to begin commercial production from the field in September 2012. However, delays with the permits necessary to install the pipeline and related facilities have seen that date of production stymied.

In announcing the successful acquisition of the relevant permits today, Frontera updated that estimate for commercial production and transport of the gas, saying that it expected to begin first gas production within 120 days.

Equipment to build the transport infrastructure is already in place and is currently stacked in the field and in key staging areas awaiting construction.

The pipeline will carry gas from wells that are currently shut in. Frontera is targeting production of approximately two million cubic feet per day of gas (57,000 cubic meters per day).

When operational, the Mtsare Khevi field will be an important asset to Frontera. Total gas has been internally estimated at approximately 1.2 trillion cubic feet of gas in place and up to approximately 700 billion cubic feet of recoverable gas.

Correction: An earlier version of this article incorrectly stated the pipeline would transport 200 million cubic feet of gas a day. Frontera is targeting production of approximately 2 million cubic feet per day of gas.