GOGC has held a pre-proposal meeting for preparation of the Underground Gas Storage Feasibility Study
A pre-proposal meeting was held for the companies willing to participate in the international open tender for the purpose of preparation of the feasibility study for construction of the Underground Gas Storage on Samgori South Dome field at Georgian Oil and Gas Corporation.
GOGC delivered a presentation for representatives of the companies participating in the meeting and answered their questions. 18 companies from Georgia, Ukraine, Italy, Germany, Denmark, The Netherlands, Czech Republic, Turkey, China and Latvia participated in the meeting. Representatives of JSC "Partnership Fund” were also present.
After the meeting the guests visited the area selected for construction of the gas storage. The results of the conducted analysis have shown that the Middle Eocene horizon of Samgori South Dome is the most optimal structure in terms of the gas storage construction.
By construction of the Gas Storage, Georgia will obtain a facility of strategic importance which will increase the energy security of the country, ensure gas supply to the Georgian customers in critical situations in case of hindering gas supply from outside the country and reduce the seasonal misbalance between gas supply and consumption.
It is noteworthy that Georgia is the only country in the region with no gas storage.
After completion of the gas storage construction it will be possible to store 230-250 million cubic meters of natural gas in it, which equals to about 15% of annual consumption currently.
Preparation of the feasibility study for the Gas Storage will be completed by the end of 2015. Simultaneously, Georgian Oil and Gas Corporation will study the conditions necessary for financing the project. In this regard, discussions with commercial banks, international financial institutions and private companies are underway. Placement of Eurobonds is considered as one of the means of financing the project. Georgian Oil and Gas Corporation already has significant experience in this area. In particular, with the funds attracted by the Corporation at the European and US Stock Markets, in cooperation with the Partnership Fund, construction of a new 230 MW Gardabani Combined Cycle TPP is underway which will be put into operation this year.
Construction of the Gas Storage on Samgori South Dome field is planned to begin in 2016.
GOGC announced a tender for preparation of the Gas Storage Feasibility Study on January 14. The deadline for submitting proposals is February 26, 2015.