Second Phase of UGS Development Started in Georgia
05 August, 2016
JSC “Georgian Oil and Gas Corporation”(GOGC) has started the development of the second phase of Underground Gas Storage Project (USC) in Georgia. The feasibility study conducted under the first phase of USG development has proved that USG with storage capacity of 300 million cubic meters can be built on Samgori South Dome depleted oil field. The study has also shown that before construction works of the project start, it is necessary to conduct additional geological studies on Samgori South Dome field, which envisages drilling two new wells at 2500 depth, as well as obtaining additional geological information and analyzing it. Final engineering project can be worked out based on the obtained information and the results of the analysis.
Geostock, a French company specialized in engineering, has been selected to conduct engineering service for this phase of USG development. The company is to conduct works within 18 months after signing the contract. GOGC will select another company to conduct drilling operations for wells through an independent tender.
After completion of the second phase of USG development, it is planned to start construction works in early 2018 and complete by 2020, for this period Georgia expects to significantly increase volumes received from Shah-Deniz gas pipeline.
Funding of the Construction of the USG will be provided by GOGC from its own sources, as well as by funds attracted from International financial institutions and donor organiusations. To this end, GOGC is holding negotiations with commercial banks, international financial institutions and private companies. GOGC is also considering the placement of Eurobond in Stock Markets.
Georgia is the only country that does not have a gas storage facility, which is a significant problem in case of an unplanned interruption of gas, as well as the seasonal imbalance between natural gas supply and consumption.
UGS will be constructed near Tbilisi on Samgori South Dome depleted oil field and 300 million cubic meters of gas can be stored in the facility totaling to 15% of current annual consumption.
Geostock, a French company specialized in engineering, has been selected to conduct engineering service for this phase of USG development. The company is to conduct works within 18 months after signing the contract. GOGC will select another company to conduct drilling operations for wells through an independent tender.
After completion of the second phase of USG development, it is planned to start construction works in early 2018 and complete by 2020, for this period Georgia expects to significantly increase volumes received from Shah-Deniz gas pipeline.
Funding of the Construction of the USG will be provided by GOGC from its own sources, as well as by funds attracted from International financial institutions and donor organiusations. To this end, GOGC is holding negotiations with commercial banks, international financial institutions and private companies. GOGC is also considering the placement of Eurobond in Stock Markets.
Georgia is the only country that does not have a gas storage facility, which is a significant problem in case of an unplanned interruption of gas, as well as the seasonal imbalance between natural gas supply and consumption.
UGS will be constructed near Tbilisi on Samgori South Dome depleted oil field and 300 million cubic meters of gas can be stored in the facility totaling to 15% of current annual consumption.