Cleaner Fossil Fuel OPET


WP16. Transfer of Technologies for Natural Gas Transportation, Storage and Utilisation for Developers and Suppliers


In the framework of this work-package an attempt is made to promote European technology regarding natural gas transportation, storage and utilisation to South Caucasus countries, Meditteranean countries (Israel) and China. Specific activities included collection of information of the natural gas system in each partner country, survey on European modern technologies applied throughout the whole natural gas supply chain, preparation of reports, articles and a manual, and dissemination of results through conferences and workshops, publications, post and electronic mail distribution.


Collection of information regarding partner countries NG supply chains included structural, legislative, technological aspects of existing systems, further needs and planned development. Modern technologies and practice employed in transmission and distribution systems, storage and conversion facilities are presented, as well as data concerning various end-user sectors, such as domestic, commercial, industrial, etc. Based on information provided by partners, recommendations for security of NG supply by means of supply diversification, implementation of storage facilities, and introduction of modern technologies have been elaborated and distributed to market actors and policy makers.


All coresponding information has been also disseminated over the internet by the development of a web site ( that includes, apart from work package deliverables and links to CFF OPET project, technical and business information on EU modern gas technologies.






WP Leader







CE.R.T.H./I.S.F.T.A. Subcontarctors:






Objective and Strategic Aspects

Socio-Economic Objectives


        Energy security enhancement in partner countries by means of natural gas supply diversification

        Strengthening of international cooperation and establishment of new links among natural gas producers, transit and consumer countries

        Promotion of EU technologies in the South Caucasus, Israel and China markets, and identification of new investment possibilities



Contribution to EU Policies


        EU support of sustainable development by attaining security of energy supply and common environmental standards, by promoting renovation of the local industries and by establishing a contemporary legislative framework for energy production


Scientific/Technical Objectives and Innovation


        European technology transfer to South Caucasus countries, Israel and China, regarding natural gas transportation, storage, distribution and end-use.

        Prospects identification for future implementation of joint projects that may leed towards efficient energy production in an environmental friendly way.



Results – Deliverables




Report on ”Gas Supply Chains and Modern Technologies for NG Sector”

Manual on “Natural Gas New Supply Chains and Modern Technologies”

Partners involved

Prepared by EEC Georgia

 (translated in Armenian by ESC Armenia)



The following conclusions and recommendations are made:

The market for natural gas is gradually expanding worldwide while the European gas market is especially a fast growing one. According to various estimations due to strong deficit of own resources the import dependency of the EU countries will raise to some 65-70 % in 2020 that requires provision of additional supply sources and transport chains.

Diversification of NG supply sources and chains, rehabilitation of existing distribution systems, planning of strategic reserves are the main tools for increasing of energy security and guaranteed supply of Europe and transit countries, which are strongly dependent on imported gas.

Prospective supply sources for EU in parallel with traditional suppliers include also Caspian gas reservoirs with proposed 120-140 bcm NG export potential in 2020. The supply of European market from the remote Caspian gas fields requires infrastructure development and introduction of modern NG technologies.

Among the possible Caspian NG supply chains to Europe South Caucasian Pipeline system from Azerbaijan via Georgia, Turkey and possible Greece appears to be more profitable for all, supplier, transit, and consumer parties.

Modern technologies for survey of respective structures, planning and construction of NG storages, first of all underground gas storage facilities in depleted oil and gas fields can provide secured storage of fuel strategic reserves by supplementary commercial impact for mitigation detrimental effect of the supply-demand misbalances and daily/seasonal peak shavings.

The progress in natural gas conversion technologies may offer competitive solutions for decentralized liquid gas production and consumption that may contribute to secure the energy supply and NG cost-effective utilization options in residential sector and industry. Gas liquefaction technologies used to convert natural gas to liquid fuels are under consideration as a competitive option to export gas from remote areas to the international market.

The small scale LNG seems to be economically viable for the transportation to distances about 500 km and supply volume below 2,5 MMscm/d or 600 – 700 kt/y. The small-scale LNG supply could be attractive for countries with significant geographic complexities such as mountains, marshes, impassable forests, etc. In this case LNG could be safely delivered by special tanks or by cars or even by horses. High energy density of LNG creates the point for economic viability of LNG supply projects. Especially it could be interesting for countries, which do not have its own gas resources but have transit pipelines (among them Georgia and Greece).

An advantage in Natural Gas Vehicle (NGV) technologies is leading to lower costs and better performances. Use of NGV reduces fuel costs and satisfies lower emissions mandates (80 – 90% emissions reduction, 10 – 14% less noise level), by 15 – 20% higher capital cost but about 10 % reduction of O&M costs compared with conventional vehicles.

Natural gas is a cleaner fuel than oil or coal, and not as controversial as nuclear energy, it is simple for consumption and convenient for end-users. The natural gas direct burning systems in residential sector are extremely energy efficient and cost-effective comparing with electricity and oil and environmentally friendly than coal and other solid fuels.

New technologies such as NG fuel cells and micro-turbines offer an effective solution to a number of energy challenges, from power generation to environmental degradation in residential, commercial and industrial sectors.

Distributed gas-fired, combined power and heat and cool generation systems enable capture and use of energy that otherwise would be wasted ultimately, result the high efficiency of NG conversation and also significant reduction of the environmental impact.

Key technologies for industrial applications of NG: power generation (Co- or Tri-generation systems), gas co-firing, gas absorption and desiccant systems, chemicals productions provide nowadays highly effective utilization of NG and significant mitigation of environmental impact.

Combined-cycle Gas Turbine (CCGT) systems are new high-effective technologies for producing electricity. CCGT power plant uses waste heat to produce more electricity. The steam produced in the heat recovery units of combined-cycle systems, is directed to a steam turbine for the generation of extra electricity. Efficiency of a combined-cycle gas turbine plant reaches 60%, compared to 30-35% for a conventional fossil fuel fired power plant.

Natural gas utilisation in chemical industry is increasing worldwide due to high efficiency and improved environmental performance of combustion units and conversion technologies, its competitive price, and ability to be converted to liquid fuels and a wide range of chemical products.

Advanced technologies in NG transportation such as: Gas compressors with high efficiency, Gas line inspection modern facilities, Pipe insulation, coating, welding & cathode protection modern tools, Distribution network optimization technique support cost reduction and increased reliability and safety of transportation systems.

Some prospective technologies recommended for implementation and development in NG sector of South Caucasus countries are as follows:

          Usage of medium pressure distribution grids

          Usage of plastic pipes with planned life time 50 years and more

          Implementation of pipeline integrity assessment systems and pipeline repair modern technologies, including No-dig methods of repair, to minimize NG losses in transmission and distribution pipelines

Besides this, special measures can be implemented for improving the energy security of Georgia and other South Caucasus countries. This includes the utilisation of local energy sources, diversification of imported fuels, introduction of modern energy technologies, and accumulation and rational utilization of strategic reserves, which requires further:

          Policy & Legislation Initiatives to Decrease Monopolistic Actions of suppliers and Liberalize Gas Sector, Active support of independent distributors to secure remaining market share (for Georgia  - 1/3 of total, including Tbilisi demand)

          On a short-to-medium term basis the main priorities pertaining to the energy security strategies is the diversification of imported natural gas supply

          The dominating elements of the long-term energy policy appropriately reflect the development of renewable energy systems (in Georgia - mainly hydropower projects), in parallel with the implementation of high-efficient integrated gas power cycles (CCGT)

           In order to avoid expected interruptions and obstacles special safety measures should be considered: a) underground gas storage capacity rehabilitation or construction, b) modern small scale technologies for LNG and CNG production and utilization c) newly developed NG combustion technologies – such as Small Scale Thermal and Generation facilities (Decentralized Co- and Tri-Generation units, fuel cells, micro turbines etc).

European countries, including Greece, can act as main supporters for the implementation of modern EU technologies for natural gas transport, storage and utilization technologies that may affect the producer, transit and consumer countries’ energy security and more general the geopolitical development on local, regional and global levels.



English manual report – “Choosing a standard for natural gas pipelines design and construction report”

Partners involved

Prepared by ICTAF – Irael



When considering the introduction of natural gas fuel into the Israeli energy basket, the Israeli government decided to relate to all the technological and legal aspects of introducing this new fuel type, using the well-established experience of other national entities that went through a similar effort.

          It became very clear that local conditions, such as earthquake spectra, as well as future power and energy development plans, as well as those related to population expansion and density, do influence the choice of standards to be used.

          Local conditions will have to be considered and the chosen code will have to be adapted to the requirements emanating from the imposed constraints. A cooperation of local expert bodies, together with foreign experts to evaluate and review the relevant international as well as the local relevant standards is of essence.

          Strict adherence of the system’s implementing entities to the recommended codes is also very important, so as not to cause delays in the construction and start of operation of this very demanding project



“Modern technologies for gas sector”

Partners involved

Prepared by ESMC – Azerbaijan



          The analyses of current supply and demand of natural gas in Azerbaijan are presented

          Future sources and volumes of natural gas production are determined

          Current state of Azerbaijan natural gas industry and infrastructure of the main transmission pipeline are assessed

          The analysis of perspective of natural gas export is given

          Roles of underground gas facilities in securing and supply of local gas consumers with natural gas and its export are determined



“Introduction of Armenian NG sector and Identification of Needs for Investments and Modern Technologies”

Partners involved

Prepared by ESC Armenia



The analyses of the recovery and development order in the gas supply sphere for 10-20 years allow claiming that during that period gas will be the main fuel in Armenia. Nonetheless, to insure the fuel supply security to Armenia it is necessary to diversify gas supply sources, as well as value the usage of the alternative energy sources.

          The preliminary analyses of the results show that the recovery of the central heating gas supply requires the least amount of investments.

          The forecasts for international gas price are given in three versions, afterwards based on the middle scenario the gas price for the final consumer has been assessed considering the necessary investments for the gas supply recovery for the three variants and also the exploitation expenses reduction in the sphere.

          The presented assessments show that that gas price will approach international prices; becoming a heavy burden for the population, unless the economic welfare and incomes of the population increases correspondingly to that period.

          Analysing the legislation in this sphere we may conclude that present legislation in Armenia mostly corresponds to the requirements of free market but the bills that insure the implementation is not sufficiently developed. Furthermore, the incompleteness of the present institutional structure in the gas supply sphere is the main obstacle for the creation of free and competitive market. We make concrete proposals how to fill in the mentioned gaps and to implement institutional improvements in the gas supply sphere, including the principles of functional separation in the sphere and the description of the necessary contractual relationship which will extend commercial relations and will insure sufficient competition.



“Short Overview of the Greek Natural Gas Sector”

Partners involved

Prepared by Exergia S.A. – Greece



Short report includes information regarding the current situation in Greek NG sector, focusing on:

          Natural gas legislation and institutional organisation

          Market development; resources identification, technologies employed, gas imports and consumption

          Short description of natural gas pipeline system (transmission and distribution network)

          LNG terminal and NG underground storages. Current conditions and planned development

          Pipeline operation and modern maintenance/rehabilitation technologies

          Short review and comparison of technologies for gas consumption including:

o          Gas-fired power generation units including power generation/combined-cycle systems and heat and electricity cogeneration systems

o          Natural gas consumption in industrial sector and transport

o          Natural gas consumption in commercial and domestic sectors.



Manual on “Overview of NG technologies technical-economic features, NG sector current situation and development perspectives”

Partners involved

Prepared by GIEC – China



The transcentural gas industry of the world was reviewed, including the growth of the proved reserves, the expansion of the pipelines, the development of the LNG factories and the progress in gas-utilising techniques. Some new strategies and policies of gas utilisation in a few countries were introduced. The trend of gas supply and demand in the 21st century was forecasted. The reasons for taking gas energy as the 21st century energy were analysed. The challenge that faces the world gas industry at present and in the future was pointed out.




          Gochitashvili, T., “Energy resources and energy security of Georgia”, Proceedings of 2nd Georgian International Oil, Gas, Energy & Infrastructure Conference, Tbilisi, 2003

          Gochitashvili, T., “Prospects of the Caspian Natural Gas Supply to Europe and Probable Impact on the Energy Security of Transit Countries”, in Security of natural Gas Supply through Transit Countries, ed. Hetland, J. and Gochitashvili, T., NATO Science Series, Kluwer Academic Publishers, Boston, 2004, pp. 3-36

          Gochitashvili, T., “Modern technologies for underground storage facilities arrangement”, Mining Journal, N 1-2, Tbilisi, 2003, pp. 58-63

          Gochitashvili, T., “Caspian gas supply prospects to international market and Georgian gas sector”, Proceedings of Georgian International Oil, Gas, Energy & Infrastructure Conference, Tbilisi, March 18th –19th, 2004

          Mnatsakanyan, A., “Choice of Natural Gas Market Model as a Factor of Insvestment Attraction”, Finances and Economy, No. 2-3, February – March 2004, Yerevan, pp. 37-38

          Stavropoulos G. and Skodras G., “Energy and Environmental Benefits from Natural Gas Cogeneration: A Case Study”, submitted to Technika Chronika, Scientific Journal of the Greek Technical Chamber

          GIEC, “The obstacles and countermeasures of NG generation in China”, Energy Conversion, 4, 2004




1. Title

            “Promotion of Natural Gas Technologies”


March 4th, 2004

Conference hall of Hotel “OLD METEKHI”, Tbilisi, Georgia


EEC Georgia

Partners involved




Plenary session 10:00-12:30

Welcome speech and two presentations made

Session 1 – CFF-OPET Project Development in Partner Countries

Four presentations made

Session 2 – Natural Gas modern technologies

Four presentations made

Round-table discussion


List of Participants

Among 43 participants, 6 participants represented State Regulatory Agency and Governmental structures, 8 participants were from International organisations and donor agencies, 16 represented universities, research and design institutions, 6 were from industrial sectors and the rest from the gas and oil sector




      Business relations among partner countries professionals and decision-makers involved in Natural Gas Sector was promoted

      Information about new supply sources in EU market from remote Caspian fields and prospects of Caspian and South Caucasus countries NG sector development were collected and utilised in manual preparation on “NG New Supply Chains and Modern Technologies”

      General information regarding the NG market and modern technologies employed in partner countries, as well as contact information, were disseminated

      Modern European technologies for gas transmission, distribution and end-use utilisation were recommended for wide implementation in South Caucasus Regional market

      Up-to-date technologies for rehabilitation-reconstruction of gas transmission and distribution systems, developed by local scientists, were recommended for implementation in South Caucasus NG regional market

      Based on the presentations and other information provided during the workshop, recommendations for possible diversification of NG supply chains to Europe and South Caucasus countries, and possible implementation of modern gas storage facilities were elaborated and used for Final Report development.

      Recommendations were disseminated among the state authorities and interested specialists involved in Gas sector.


For complete presentations please contact  Mr George Abulashvili



2.         Presentations made by work-package partners at other international workshops – conferences:


      Gochitashvili, T., “Prospects of the Caspian Natural Gas Supply to Europe and Probable Impact on the Energy Security of Transit Countries”, presented at

NATO Advanced Research Workshop on “Security of Natural Gas Supply through Transit Countries”, May 23rd – 24th, 2003, Tbilisi, Georgia

      Gochitashvili, T. and Kutsnashvili, O., “New Gas Supply Projects to Europe”, presented at

International Conference on “Caspian Gas, Strategies for Development”, November 17th – 18th, 2003, Brussels, Belgium

      Gochitashvili, T., “Caspian gas supply prospects to international market and Georgian gas sector”, presented at

Georgian International Oil, Gas, Energy & Infrastructure Conference, March 18th – 19th, 2004, Tbilisi, Georgia