German KfW, Georgian Oil and Gas Corp to ink 150M euro loan deal for gas storage
The construction of an underground gas storage facility will start in Georgia, which will ensure the elimination of existing imbalances between gas supply and consumption in the country and satisfy the peak consumption in winter, Georgia’s Prime Minister Mamuka Bakhtadze said, Georgian media report.
Bakhtadze said that a 150 million euro loan agreement will be signed between Germany's Reconstruction and Development Bank (KfW) and the Georgian Oil and Gas Corporation, which envisages the construction of the infrastructure of the underground gas storage facility.
“This project is important not only in terms of strengthening energy security, but also for stabilizing the gas supply during winter,” the prime minister said.
Georgian Economy Minister Giorgi Kobulia says implementation of the project will protect Georgia from risks.
“After the gas storage is constructed, the country will have gas reserves for one and a half months. This project is commercially profitable, because we can purchase the gas when it is cheaper,” the minister explained.
Azerbaijan is the main supplier of gas to Georgia.