Georgia considers construction of underground gas storage

Oil&Gas Materials 10 June 2021 13:49 (UTC +04:00)
Georgia considers construction of underground gas storage

BAKU, Azerbaijan, June 10

By Tamilla Mammadova – Trend:

The company that will build the first underground gas storage (UGS) in Georgia has been identified and negotiations are underway with it to sign an agreement, Trend reports via the Cabinet of Ministers, presented to the Parliament.

The construction of a gas storage facility with a capacity of 300 million cubic meters in Georgia has been discussed since the 90s of the last century. The project got a new lease on life when the government announced a tender to build the storage facility. Construction was supposed to be completed by 2022, but due to the complexity of implementation, the dates were postponed until 2024.

According to the government, a company has already been identified that will build the UGS facility in Gardabani, and now negotiations with it will continue to finalize the agreement.

As reported, a feasibility study of the project, a report on its impact on the environment and a draft of special legislation have already been prepared.

The total cost of the UGS construction project is about 250 million euros, financing will be carried out at the expense of Georgian Oil and Gas Corporation and funds attracted from international financial institutions.

Georgia is currently the only country in the Transcaucasus that does not have its own UGS facility. Gas supply to Georgia is carried out exclusively through imports. Azerbaijan is the main gas supplier for Georgia.


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