Georgia builds its first ever gas storage facility
Technical-economic feasibility study reveals positive results

Georgia is taking a giant step forward in the energy sector by building its first underground natural gas storage facility to safeguard the country’s natural gas supply.

The Technical-economic feasibility report about the new gas storage facility has been completed, and today Georgia’s Ministry of Energy and general director of Georgian Oil and Gas Corporation (GOGC) presented the final results.

The feasibility study showed once construction of the terminal was completed in May, it would be possible to store 210-280 million cubic meters (m3) of natural gas, which is about 15 percent of the country’ current total annual consumption.

The feasibility study report was prepared by Geostock, an international key player in underground storage for liquid, liquefied and gaseous hydrocarbons.

Georgia announced construction of the underground gas storage facility in October 2014.

The 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.