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Gas Agreement Term between Azerbaijan and Georgia Defined

Oil&Gas Materials 13 February 2008 20:25 (UTC +04:00)

Azerbaijan, Baku, 13 February / Trend / The agreement on the gas supply from Azerbaijan to Georgia and its cost will be agreed till March, the Azerbaijani Industry and Energy Ministry, reported on 13 February. These issues were discussed during the meeting with Alexander Khetaguri -Georgian Energy Minister and Natik Aliyev-Azerbaijani Industry and Energy Minister, in Baku.

There are plans that the Georgian Minister will meet with Rovnag Abdullayev, the head of State Oil Company of Azerbaijan (SOCAR), on 13 February.

Azerbaijan may supply 500mln cu m of gas to Georgia per year, despite the country's demand of 1 to 1.5bln cu m of gas per year, Natik Aliyev, Azerbaijani Industry and Energy Minister, stated. Georgia is ready to purchase gas from Azerbaijan at a price of $180-$190 per 1,000 cu m.

Azerbaijan will restore its gas supply to Georgia after the signing of an agreement. The gas supply will be carried out, in accordance with the contract signed with SOCAR.

In 2007, purchased gas from Azerbaijan at a price of $120 per 1,000cu m, but the sum will be increased in 2008. Georgia purchases part of gas from Russia at a cost of $235 per 1,000cu m.

SOCAR produces gas in its own fields. Azerbaijan delivered 1.3-1.5mln cu m of gas per day to Georgia. The gas is transported to the Georgian border through the gas transporting lines of Azerigas.

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