Economy and business

๐ŸŽฅ 16 billion cubic meters of gas reserves in Georgia - the largest discovery in the country's history

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16 billion cubic meters of gas reserves have been confirmed in Georgia, which is approximately equivalent to 8 years of consumption in Georgia. A large gas field was discovered near Tbilisi. This discovery should contribute to the increase of energy independence of the country.

Work on extracting natural gas in Georgia will start in 2023. The deposit found near Rustavi totals 16 billion cubic meters. It is not impossible for the total natural gas deposits in Georgia to be even more. The work will be done by the British company, Block Energy. This discovery will assist the country in increasing its energy independence.

The 16 billion cubic meters of natural gas found in this place is the largest such discovery in the history of Georgia. It has been established that this amount of natural gas is equal to the total amount used in eight years in Georgia. The company performing the work is called Block Energy. The British company is obligated to leave some of the natural resource in the country while extracting it.ย 

โ€œAt first there were vertical boreholes. Block Energy made those boreholes using a new horizontal boring method. At the same time a new borehole was made. In addition, Block Energy plans to drill two more boreholes. All of that will help us to make most use of the deposits in Georgia and to increase them,โ€ โ€“ says block operation company director Mamuka Kharabadze.

The extraction work is planned to start in 2023. The CEO of Block Energy, Paul Haywood, who is the person responsible for the process at the moment, says that many more gas resources may be discovered in Georgia. For example, the villages of Samgori and Patardzeuli have been discussed as possibly being such places. According to information provided by the State Agency of Oil and Gas, Block Energy has received permits for five products.ย 

โ€œWe are certain that, along with natural gas, there is also a fair amount of petroleum resources, in Kakheti for example, maybe more than 19 million barrels. We also plan to do research on other areas this year, and weโ€™re talking about an additional 10 billion cubic meters of gas. The research is a fairly complex process that takes a lot of time and resources. However, we have a proper program and are hoping that we can start working by the first quarter of 2023,โ€ - says Paul Haywood.

The Chairman of the Oil and Gas Agency, Giorgi Tatishvili, states that the company has already presented specific plans and assumes that the first results will be in 2024:

โ€œMaking use of the field will require additional work. The company has a specific plan. We believe that physical work will start at the site next year, and, even with our most pessimistic calculations, we will have our first results by 2024,โ€ - says Giorgi Tatishvili.

The Minister of Economy and Sustainable Development says that this new find should help the country to increase its energy independence. For us it means a reduction in imports.ย 

โ€œMaking us of local resources for energy is one of the Ministry of Economyโ€™s top priorities, in order to increase our energy independence and, of course, to generate both our own electrical energy as well as natural gas and petroleum. We are doing all that we can in this field. We are working closely with investors and we think that we will have tangible results to gradually reduce our dependence on imported electricity, gas, and petroleum in the near future,โ€ โ€“ noted Levan Davitashvili .

The natural gas deposits were first talked about in 2019 and confirmed in 2022.

A contract was entered into by Block Energy and the government in 2020.

The contract period is 25 years with a possible 5-year extension.