Georgia seeks investor for gas storage facility construction
Georgia, Tbilisi, Oct. 5 /Trend, N.Kirtskhalia/
The Georgian government begins a search of investor for the construction of an underground gas storage facility, Georgian Minister of Energy and Natural Resources Alexander Khetaguri said today at a meeting of the parliamentary committee on economics. According to him, work on the feasibility of the project has been completed.
"Underground gas storage facility is the best way to create strategic reserves of natural gas, for the seasonal balancing and operational management of gas," the minister said.
A preliminary draft of the construction of underground gas storage facility was first developed in 1992 by German UGS GmbH jointly with Russian partners.
The project provides for construction total (505 million cubic meters) and an active underground gas storage facility (230 million cubic meters) in the Samgori region. However, the project remained unrealized because of the political processes taking place at that time.
In 2002-2004, a feasibility study for the project was developed by Washington Strategic Advisors LLC. The optimal variant for Georgia was recognized the construction of gas storage facility of 300-400 million cubic meters. According to the authors, it will allow Georgia to save $120 million for 25 years. Its location was shifted to Ninotsminda.
Pre-construction design work will be conducted by the Danish Ramboll Oil & Gas A/S, agreement with which Millennium Fund of Georgia signed in December 2009. The project cost is $3.4 million, and its duration - 12 months.