Georgia to boost energy security with new underground gas storage facility

The European Investment Bank (EIB) is planning to lend €100mn to Georgia to convert a depleted oil field at the Samgori South Dome, in the east of the country, into an underground storage facility for natural gas, writes Keith Nuthall. The goal is to increase the security of energy supply in Georgia during 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 money will be lent to Georgian Oil & Gas Corporation and will cover a third of the development’s projected €300mn cost. The facility will store up to 15% of Georgia’s annual consumption of gas. Plans are now under environmental review, with the bank’s loan approval depending on the storage facility being built according to official Georgian and European Union environmental standards, as demonstrated by an environmental and social impact assessment acceptable to the EIB.