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Georgia Will Manage its First Ever Gas Storage

The oil well base territory of the southern arch of Samgori has been already selected for constructing an underground gas storage.

The oil well base is capable for storing 210-280 million cubic meters of oil, i.e. 15% of the current total annualized consumption.

According to preliminary estimations, the project’s investment value is 250 million USD. Several companies are interested in the underground gas storage project implementation, including Azerbaijani SOCAR.

Temur Gochitashvili, chairman of the supervisory board of Georgian Oil and Gas Corporation (GOIGC), told the Business Contact, the gas storage will be managed by the company founded by either GOGC or the Energy Ministry.

“From today’s perspectives, the asset will be managed by the Georgian company, founded by GOGC or the Energy Ministry, in the same form under which we manage our trunk gas pipelines. Other companies will be able to joint project as stakeholders, but the controlling interest will be kept by a Georgian company”.

Other companies may just construct and carry out operation of the facility and to transmit it to us. This issue is being still specified and the final decision has not been taken yet”, Temur Gochitashvili said.

According to GOGC information, the underground gas storage construction works will start in 2017 to store natural gas received mainly from Shah-Deniz second phase. The facility will start operation in 2020.

he storage tank will be built on the territory of the south Samgori’s capped oil field in Georgia’s capital Tbilisi. It will be able to accommodate seasonal and short-term fluctuations in terms of demand for natural gas.

Georgia’s Ministry of Energy said Georgia was the only country in the region that did not have a gas storage facility, which was a significant problem when there was unplanned interruptions of the gas supply, as well as the seasonal imbalance in consumption and supply.

The State Oil Company of Azerbaijan Republic (SOCAR) has expressed interest to participate in the project. Additionally, a leading Chinese engineering firm, Tianchen Engineering Corporation, was willing to invest in Georgia’s gas and energy sectors.