Georgia will put into exploitation its first underground gas storage tank at the beginning of 2012.
Temur Gochitashvili, head of the supervisory board of the Georgian Oil and Gas Corporation (GOGC), told the Business Contact that at this stage the project feasibility studies have been finished, but additional research works are required for optimizing technical and economic parameters. The research works will be performed by French company GeoStock for 18 months.
“The French company will provide consultations in engineering services. Preparatory works are underway and on August 15 practical works will start”, Gochitashvili said.
At the beginning of 2018 the project will move to the third phase, i.e. construction works.
“In 2021 the gas storage tank construction works will end, when Georgia will receive additional volumes of natural gas from Shah-Deniz. Our balance implies transportation of extremely much volume of gas from Shah-Deniz second phase at the end of 2020 and at the beginning of 2012.
If the gas storage tank construction works are not finished in that period, we will not be able to utilize the received gas volumes in optimal way and we will have to sell the natural gs in summer period and buy in winter period and we will have to bear losses”, Temur Gochitashvili said.
The tender for gas storage tank construction will be announced at the beginning of 2018. Both international organizations and private companies have expressed readiness to take part in the tender, including Chinese Hualing and SOCAR, the state oil company of Azerbaijan.
The Georgian Party will hold a majority of shares in the gas storage tank project. The facility will store 210-280 million cubic meters of natural gas that is 15% of Georgia’s total annual consumption.