SOCAR sees no progress in gas storage project in Georgia

/By Azernews/

By Gunay Camal

Azerbaijan’s state oil company SOCAR doesn’t see progress in the project for construction of an underground gas storage facility in Georgia for the present, a source in SOCAR told Trend on August 1.

Currently, Georgia is waiting for completion of the project’s feasibility study by the French Geostock company, which is the contractor of the project.

“The full and comprehensive feasibility study is not ready for the present. The issue is that there can be additional wells, which were not earlier taken into account on the territory of Samgori field, where the gas storage will be built. Geostock is elaborating the feasibility study by taking into account those wells,” the source said.

Noting that there is no information about progress so far, the source added that however, the work continues

“It was announced that the feasibility study will be completed in autumn, but it is impossible to specify the date,” added the source.

The construction of the gas storage facility is expected in 2016.

After the completion of the construction, it will be possible to store 230-250 million cubic meters of natural gas, or around 15 percent of the gas consumption in Georgia.

SOCAR intends to take part in the construction of the gas storage facility in Georgia, since the Azerbaijani gas supplied to this country by the company will be the primary resource for injection into the gas storage.

Azerbaijan supplies about 90 percent of Georgia's gas consumption via the South Caucasus Pipeline from Shah Deniz and the Gazimohammed-Tbilisi pipeline from SOCAR. 

Gazprom is also supplying gas to Georgia as a part of 10% transit fee for gas exported to Armenia through Georgia via the North-South Caucasus gas pipeline.

SOCAR-Energy Georgia bought Georgia’s natural gas distribution companies in 2008 and ITERA-Georgia in 2012 and hence controls the entire natural gas distribution system of Georgia.