BAKU, Azerbaijan, October 30
By Tamilla Mammadova – Trend:
An underground gas storage facility to be built in Georgia in 2023, said Deputy Minister of Economy and Sustainable Development of Georgia David Tvalabashvili, Trend reports citing Georgian media outlets.
According to him, the tender procedures are still developed, and the construction company has not been determined yet.
KfW, a German government-owned development bank, signed promotional loan 150 million euros with the state-owned Georgian Oil and Gas Corporation (GOGC) for the construction of the first underground gas storage facility in Georgia. The total investment in the project amounts to some 220-250 million euro and is to be financed by KfW, together with the European Investment Bank (EIB) and the GOGC.
Three large companies are interested in participating in the tender, Tvalabashvili noted.
“The amount of gas that we get from Shah Deniz gas pipeline is distributed unevenly. in the new gas storage, we will store up to 300 million cubic meters of gas,” the deputy minister said.
The construction of the mentioned gas storage has been repeatedly postponed. According to the latest data, its completion, as the deputy minister noted, is scheduled for 2023.
“To date, Georgia is the only country in the Black Sea region without gas storage facilities. With the construction of the first underground gas storage facility, Georgia will significantly improve its energy supply and create the conditions for investment and economic growth through increased energy security,” says Joachim Nagel, member of KfW Group’s Executive Board.
About 80 percent of Georgian households are connected to the gas network and will benefit from the project, which, in turn, will complement KfW’s highly successful involvement in the Georgian energy sector. The company supports Georgia in reforming its energy sector.
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