News

24 August, 2018

The Reconstruction Credit Institute of Germany (KfW) allocates EUR 150 million to GOGC for the underground gas storage funding purposes

A loan agreement for arrangement of the underground gas storage on Samgori South Dome field has been signed between JSC "Georgian Oil and Gas Corporation" and the Reconstruction Credit Institute of Germany (KfW). The loan agreement envisages allocation of funds for construction of the underground gas storage in the amount of EUR 150 million.

Construction of the underground gas storage will significantly increase the energy security of Georgia. The project will significantly facilitate regulation of the seasonal misbalance between gas supply and consumption in the country and meeting the peak consumption demand during the winter period. In addition, in case of unscheduled, emergency termination of gas import to Georgia, it will be possible to supply the Georgian customers with gas from the gas storage continuously.

Construction of the gas storage will be carried out on the processed oil field of Samgori South Dome near Tbilisi and it will be possible to store up to 300 million cubic meters of gas in it.

Feasibility study and respective engineering-technical documents have already been prepared within the framework of the underground gas storage project development in Georgia. The procedures for selection of the construction company and the environmental protection consultant are underway in accordance with the International Procurement rules.

JSC "Georgian Oil and Gas Corporation" successfully continues negotiations with the European Investment Bank to raise additional USD 100 million for construction of the underground gas storage which will be enough for implementation of the project together with the funds received from KfW.

JSC "Georgian Oil and Gas Corporation" will start the gas storage construction works in 2019. Commissioning of the project is planned in 2022.