Azerbaijan Re-establishes Gas Supply to Georgia

Oil&Gas Materials 18 February 2008 20:59 (UTC +04:00)

Azerbaijan, Baku, 18 February /corr. Trend S.Aliyev / Azerbaijan's Azerigaz JSC has re-established the gas supply to Georgia, a Government source stated on 18 February.

Last year, the contract was signed to supply 60mln cu.m of gas to Georgia. This volume was fully covered (for $120 per thous. cu.m), but 10mln cu.m remained unsupplied, Samadzade said. In February Azerigaz intends to supply this volume. Last year, Azerbaijan supplied nearly 1.3mln cu.m of gas per day.

At present, new agreements for the gas supply to Georgia are being discussed. This year the contract will be signed not with Azerigaz, but with the State Oil Company of Azerbaijan Republic. The agreement on the gas supplies from Azerbaijan to Georgia and its capacity will be reached in March.

Azerbaijani officials stated earlier that the Country may provide 500mln cu.m of gas to Georgia per year, irrespective of its demand in volume of 1-1.5bln cu.m per year. In 2008, the gas price will be increased. Georgia is prepared to purchase Azerbaijani gas for $180-$190 per thous. cu.m.

SOCAR possesses its own gas, developed independently in its fields.