The European Investment Bank (EIB) might finance an underground gas storage project in Georgia, according to information published on EIB’s website on December 31, 2018.
The Oil and Gas Corporation of Georgia, which works under the Partnership Fund, has requested the EIB for financial support for the project. The entire cost of the project is 300 million USD.
The EIB’s board of directors will decide whether to finance the project.
According to the project, the underground gas storage will be constructed on the depleted oil field at Samgori South Dome. Oil and Gas Corporation of Georgia has already received approval for implementing the project on this territory.
The capacity of the gas storage will be 210-280 cubic meters. Gas storage will be able to contain 15% of Georgia’s overall annual consumption.
The main objective of the project, as suggested by EIB, is to “Increase security of energy supply in Georgia in case of supply disruptions and secure peak and seasonal demand of household and electricity producers without increasing Georgia's dependency on its single and key supplier (Azerbaijan).”
The gas storage project was suggested by the Partnership Fund in October 2014.