Georgia will begin construction of the first gas storage facility in 2022
Georgia's first underground gas storage facility (UGS) is scheduled to start in 2022 in Gardabani (Kvemo-Kartli region). This was stated to journalists by Deputy Minister of Economy and Sustainable Development of Georgia David Tvalabeishvili.
The total cost of the UGS construction project is about 250 million euros, financing will be carried out at the expense of the Georgian Oil and Gas Corporation and funds raised from international financial institutions.
"In previous years, funds allocated by financial institutions for the construction of an underground gas storage facility were diverted to other areas due to the pandemic. But this does not mean that the project has been stopped and will not be implemented. We plan to start the first phase next year," Tvalabeishvili said.
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 first phase will be implemented with the participation of the Credit Bank for Reconstruction of Germany (KFW).
The Ministry of Economy is negotiating the financing of the project with other private groups. In turn, the Georgian Oil and Gas Corporation JSC is discussing with the European Investment Bank (EIB) the attraction of an additional $ 100 million.
There has been talk about the construction of a gas storage facility with a capacity of 300 million cubic meters in Georgia since the 90s. The project got a new lease of life when the government announced a tender for the construction of a storage facility. The construction was supposed to be completed by 2022, but due to the complexity of the implementation, the deadlines were postponed until 2024.
Georgia is currently the only Transcaucasian country that does not have its own UGS. Georgia's gas supply is carried out exclusively through imports.
Azerbaijan is the main gas supplier for Georgia.
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Georgia will begin construction of the first gas storage facility in 2022
Georgia's first underground gas storage facility (UGS) is scheduled to start in 2022 in Gardabani (Kvemo-Kartli region). This was stated to journalists by Deputy Minister of Economy and Sustainable Development of Georgia David Tvalabeishvili.
The total cost of the UGS construction project is about 250 million euros, financing will be carried out at the expense of the Georgian Oil and Gas Corporation and funds raised from international financial institutions.
"In previous years, funds allocated by financial institutions for the construction of an underground gas storage facility were diverted to other areas due to the pandemic. But this does not mean that the project has been stopped and will not be implemented. We plan to start the first phase next year," Tvalabeishvili said.
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 first phase will be implemented with the participation of the Credit Bank for Reconstruction of Germany (KFW).
The Ministry of Economy is negotiating the financing of the project with other private groups. In turn, the Georgian Oil and Gas Corporation JSC is discussing with the European Investment Bank (EIB) the attraction of an additional $ 100 million.
There has been talk about the construction of a gas storage facility with a capacity of 300 million cubic meters in Georgia since the 90s. The project got a new lease of life when the government announced a tender for the construction of a storage facility. The construction was supposed to be completed by 2022, but due to the complexity of the implementation, the deadlines were postponed until 2024.
Georgia is currently the only Transcaucasian country that does not have its own UGS. Georgia's gas supply is carried out exclusively through imports.
Azerbaijan is the main gas supplier for Georgia.
newsgeorgia.ge
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