Azerbaijani Company to Manage Georgia’s Gas-Distributing Networks
Azerbaijan, Baku / Trend corr S. Aliyev / The State Oil Company of Azerbaijan Republic (SOCAR) intends to take part, through SOCAR Georgia, in the competition for management of Georgia's gas-distributing networks, SOCAR Georgia reported on 14 November. A total of 29 gas-distributing networks were put up for competition to include five lots. These networks cover almost all of Georgia, except of Tbilisi.
SOCAR produces its own gas at the fields it develops. Till the end of October SOCAR was supplying to Georgia some 1.3-1.5mln cu m of gas per 24 hours. The gas was transported to the border of Georgia through Azerigaz JSC gas transporting lines.
Moreover, SOCAR already has investment infrastructural projects in Georgia, such as the construction of an oil terminal in Kulevi on the Black Sea shore and establishment of its oil products retail network.
Georgia and Azerbaijan are negotiating on the continuation of supply of Azerbaijani gas in 2008. But the price for the gas will change. This year gas is exported at $120 per 1,000 cu m, but in 2008 the price will increase. Georgia also purchases gas from Russia at $235 per 1,000 cu m. Gas to Georgia is also supplied from the Shah Deniz field developed by foreign companies at 1mln cu m per 24 hours.