Possibilities for gas storage facility in Georgia
By M. Alkhazashvili
(Translated by Diana Dundua)
(Translated by Diana Dundua)
Thursday, December 13
The government hopes that the Kuwait Fund for Arab Economic Development (KFAED) will help finance a natural gas storage facility in Georgia, one of the country’s key energy security priorities.
Over the past few years donor organizations have pumped money into researching the project, with the US Trade and Development Agency (USTDA) allotting USD 1 million in 2005 and the Millennium Challenge Fund putting forward USD 5 million last year.
KFAED expressed an interest in financing further research this year, although the government decided the state budget would cover all research costs from now on, according to the newspaper 24 Saati.
However, government representatives say they hope KFAED, which has already donated USD 24.5 million for road construction and plans to invest in three hydroelectric power stations on the River Rioni, will also consider financing construction of the gas storage facility.
Gas storage facilities have two broad purposes: to meet seasonal demands and ensure against unforeseen supply disruptions. In Georgia, gas storage would allow Tbilisi to buy up gas during summer (when it is often cheaper) and retain it for the higher demand period in winter.
Over the past few years donor organizations have pumped money into researching the project, with the US Trade and Development Agency (USTDA) allotting USD 1 million in 2005 and the Millennium Challenge Fund putting forward USD 5 million last year.
KFAED expressed an interest in financing further research this year, although the government decided the state budget would cover all research costs from now on, according to the newspaper 24 Saati.
However, government representatives say they hope KFAED, which has already donated USD 24.5 million for road construction and plans to invest in three hydroelectric power stations on the River Rioni, will also consider financing construction of the gas storage facility.
Gas storage facilities have two broad purposes: to meet seasonal demands and ensure against unforeseen supply disruptions. In Georgia, gas storage would allow Tbilisi to buy up gas during summer (when it is often cheaper) and retain it for the higher demand period in winter.