OREANDA-NEWS. September 27, 2012. Drilling of the first exploratory well was started today with the aim to determine the suitability of the Syderiai geological structure (Telsiai district) for an underground natural gas storage facility. Two vertical wells (1,500 to 1,560 m deep) and two re-entry wells will be drilled. The investigations, which are to be completed by the end of May 2013, will show whether natural gas can be stored in this locality, at the depth of approximately 1,500 m.

The purpose of the project on the Syderiai underground natural gas storage facility is to ensure energy security of the country and to accumulate a natural gas reserve. Exploitation and development of the potential of other current projects is being sought as well.

“The underground gas storage facility would optimise the operations of the Klaipeda liquefied gas terminal and contribute to the formation of the Lithuanian natural gas market and reduction of the monopoly. All this would lead to lower prices for natural gas in Lithuania“, Dalius Misiunas, Director General of Lietuvos energija, AB which conducts the investigations, describes the benefits of the Syderiai gas storage facility.

The drilling works and part of the investigations will be carried out by Diament, a Polish company, jointly with its Lithuanian partner Minijos Nafta UAB. Experienced German and Polish experts will be hired as subcontractors in the project.

It is expected that local businesses will also receive benefits from the investigations phase. Drilling site and road construction works will be carried out by a local construction firm, Rainiu Statyba UAB. Enterprises from the region will be hired for engineering works and servicing. It is estimated that about 30 workers will be accommodated in the neighbouring areas for the term of the investigations, which will increase the demand for accommodation, catering, laundering, transportation and other services.

Phase II of the investigations will include the building of two new crushed-stone roads, which local communities will be able to use. The drilling sites will be abandoned and the land will be restored to its original condition on completion of the investigations.

Lithuania has launched the project on the Syderiai underground natural gas storage facility in 2009. The Syderiai geological structure was selected as the most suitable from among 129 other locations. Water-bearing sandstone occurring at the depth of about 1,500 m could be used for the storage of natural gas. It is expected that the results of the investigations will be known in May 2013.