Photo: David Mdzinarishvili / Reuters
Germany has provided Georgia with € 150 million for the construction of the country’s first gas storage, the report said the German Embassy in Tbilisi.
“On behalf of the Federal Ministry for economic cooperation and development, KfW provides credit for the development in the amount of 150 million euros for the construction of the first underground gas storage facility in Georgia. The total investment will amount to 220-250 million euros and will be financed by KfW, the European investment Bank (EIB) and the state of Georgian oil and gas Corporation (GOGC),” — said in a press release.
The expected storage capacity will reach 400 million cubic meters of gas, equivalent to 10-15 percent of the needs of Georgia. It is noted that its presence will reduce the energy dependence from Tbilisi in neighboring countries. In addition, the construction of the repository provided by the Association agreement, which Georgia and the European Union signed in 2014.
In January 2018 Georgia finally refused to buy gas in Russia. It was replaced by Azerbaijani gas, which the authorities believe is more profitable. Also Tbilisi and Moscow switched over to cash settlement for transit of Russian gas to Armenia via Georgia. Before this payment was made partly raw materials.
Video, photo All from Russia.