Georgia, Tbilisi, 16 January / Trend corr. N.Kirtskhalia / The well-known Georgian newspaper Resonansi published an article about the possible sale of the Tbilisi Kaztrangas Tbilisis gas distribution network.
According to the newspaper, the sale to Kazakhstan investors fell through, and a second attempt of the sale of the company is planned for the spring.
A possible new owner of the company may be the State Oil Company of Azerbaijan (SOCAR).
Nugzar Tsaava, one of the managers of SOCAR's Georgia daughter company, informed the newspaper that the company is not considering acquiring Kaztransgas Tbilisi.
Kaztransgas Tbilisi did not confirm that that the Kazakh investors had left Georgia.
The newspaper stated that SOCAR intends to acquire the regional gas distribution network companies in Georgia and took part in the tender announced by the Georgian Economic Development Ministry. The results of the tender will be announced in the near future.
About twenty-nine gas distribution networks are included in the sale, united in five lots. These networks cover almost the whole territory of Georgia excluding Tbilisi.
SOCAR has its own gas, which is produced from its own fields. Azerbaijan delivered about 1.3 to 1.5mln cu m of gas, produced from the fields of SOCAR to Georgia by the end of 2007. The gas is transported to the Georgian border through Azerigas gas transport lines.
SOCAR has investment infrastructures projects in Georgia, including construction of an oil terminal in Kulevi on the Black Sea coast.
Negotiations between Georgia and Azerbaijan have been held to continue gas delivery by Azerbaijan in 2008. The cost of gas will be changed. In 2007, Azerbaijan delivered gas to Georgia for $120 for 1,000 cu m. Georgia purchases part of their gas from Russian at a cost of $235 for 1,000 cu m. About 1mln cu m of gas has been delivered to Georgia from the Azerbaijani Shah Daniz field per day.