US company finds 5 trillion cubic meter reserve of gas in Georgia
American company Frontera Resources has found a 5 trillion cubic meter reserve of gas in Georgia, Georgian media reported. The media quoted the President of Frontera Resources, Steve Nicandros, who said that it can take up to 5 years for Georgia to begin exporting gas.
Steve Nicandros stated that this gas will flow to Turkey and the countries of Eastern Europe. Last year, Frontera Resources, which has been working in Georgia since the mid-1990s, came to an agreement with Ukrainian Naftogaz, promising supplies of liquefied gas from its facilities in Georgia. Last autumn, Frontera Resources said that there can be up to 3.8 trillion cubic meters of gas resources in Georgia. That estimate has now increased to 5 trillion cubic meters.
Local media have already reported that Georgia opened a new historic chapter in moving towards energy independence. It is worth noting that the President of Frontera Resources, Steve Nicandros, reported in summer 2014 that gas reserves of 40 billion cubic meters were found in Georgia, Interfax reported.
“It was established that gas reserves of 42 billion cubic meters exist at this field which creates preconditions for ensuring energy independence of Georgia in the future”, he stated at the ceremony about the start of supplying natural gas, extracted from the field, to the common gas network of the country.
$400 million was invested in the project. Managing Director of Frontera Resources in eastern Georgia, George Zambakhidze, promised at the time that more than 75 thousand cubic meters of gas per day would be supplied to the main gas pipeline of the country from the opening of Mtsare Khevi Field.
Currently, Georgia receives gas mostly from Azerbaijan and is currently holding negotiations with Gazprom. For the transit of Russian gas, Georgia receives 10% of the total volume being supplied to Armenia.