Azerbaijan, Baku, August 21 / Trend E. Ismayilov /
SOCAR has the potential to design and construct an underground gas storage unit in Georgia, a source in the oil and gas market said on August 21.
"SOCAR has all the potential, including the technology, to prepare the project and realize the construction of the underground gas storage unit in the Ninotsminda region," the source said.
The source said that the feasibility study of this project has not yet been prepared. "Only after a preparation of a feasibility study will it be possible to name concrete volumes and figures."
The possible capacity of the gas storage unit planned to be constructed in Georgia varies from 250 to 500 million cubic meters, the source said. The gas storage unit will be constructed on the base of the field from which oil and gas have been extracted.
The company still maintains its intentions to participate in the construction of the underground gas storage unit in Georgia, the head of SOCAR, Rovnag Abdullayev, said before.
SOCAR is continuing negotiations with the Georgian government. SOCAR deals most of the gas imported into Georgia. It provides 75 percent of the market. In the future it wants to increase its share holding on the market. "Therefore, the presence of a gas storage unit for 300 million cubic meters will have a positive effect on our business," Abdullayev said.
The construction of the gas storage unit is planned to be completed in three phases; its holding capacity will be 450 million cubic meters at the first stage, 1.5 billion cubic meters at the second stage and 5 billion cubic meters at the third stage, Georgian Energy Minister, Alexander Khetaguri, said in Baku earlier.
'The second and the third phases are being considered in terms of the whole region. If Azerbaijan wants to preserve gas there to transport to Europe in future, by the South Caucasian gas pipeline and the Nabucco pipeline, it will be able to make use of this gas storage unit," Khetaguri said.
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