Georgia To Build Gas Storage by 2020
Georgian Oil & Gas Corporation (GOGC) has said it has begun stage two of a project to build the country's first underground gas storage.
“Studies done during the first stage have confirmed that gas storage with the capacity of 300mn m3 -- about 15% of the country's current annual consumption – could be built on the south of the Samgor oil field on the east of Georgia,” said state-owned GOGC.
Additional geological studies must be done, it added, prior to construction which envisages drilling two new wells to a depth of 2,500 metres on the field. After that, a final engineering project could be commissioned for the underground gas storage project.
French engineering company Geostock will provide consultative services within 18 months and another company will be selected for drilling on the basis of the tender.
As soon as the second phase of the project is completed, construction of the gas storage will begin in early 2018 and it will be completed by 2020. By that time volume of natural gas exported to Georgia from the Azerbaijani Shah Deniz will significantly increase, indicated GOGC.
According to Georgia’s estimates, it will cost $250mn to build the storage facility. Placement of Euro bonds on stock exchanges by the corporation is considered as one source of funding, said GOGC.
Georgia consumes over 2bn m³/yr of gas, for which it is wholly dependent on imports.
Azerbaijan desk