SOCAR divulges gas supplies to Georgian gas distribution networks

Oil&Gas Materials 14 March 2009 12:11 (UTC +04:00)

Azerbaijan, Baku, March 14 / Trend , E.Ismayilov/

The State Oil Company of the Azerbaijani Republic (SOCAR) will deliver 7 million cubic metres of gas to 30 gas distributing networks in Georgia, which are fully owned by the SOCAR Energy Georgia, SOCAR Georgia President Mahir mammadov said. The SOCAR Energy Georgia is a subsidiary of the State Oil Company of Azerbaijan Republic  

"We have already launch gas flow to these distributing networks. It is expected that 7 million cubic metres of gas will be delivered to the networks before the end of March. The daily gas supplies to the networks will be 200,000 cubic metres of gas," Mammadov added.

SOCAR provides roughly 1.4-1.5 million cubic metres of gas to Georgia and 1.4 million cubic metre from the Shah Daniz field.

On Dec.26, SOCAR Energy Georgia and the Georgian government signed an agreement which enabled the company to own 30 gas-distributing networks which covers Kakheti, Mtskheta-Mtianeti, Shida, Kvemo Kartli, Ajaria, Guriya, Imereti and Samegrelo.

The contract on development of off-shore Shah Deniz field was signed on 4 June 1996. Shah Deniz participating interests are: ВР (operator - 25.5%), StatoilHydro (25.5%), SOCAR (10%), LukAgip (10%), NICO (10%), Total (10%), and TPAO (9%).

The project aims to increase number of users of the 30 gas-distributing networks 45,000 up to 150,000. The number of users is expected to increase 36,000 at the early stage.  

The total volume of investments to the project hit $40 million. The investments were spent to purchase metallic and plastic pipelines, to prolong infrastructure projects in Ajaria. The gas supply process in Ajaria began in mid-2008. We have given certain project instructions in the regions, Mammadov said.

SOCAR Energy Georgia has completed talks with a foreign company to buy gas-distributing networks in Marneuli, densely populated by Azerbaijanis.

The contract will be signed with a foreign company, which is the current owner of these networks. Mammadov did not call the name of the company. The contract will be implemented in March of this year.

Purchase, development and management of these gas-distributing networks are not included in the $40 million project. From commercial viewpoint, this is a good deal. We have got familiar with technical indicators of these systems. We have designed business plan to manage them. It is early to say how much we will invest. But it will certainly be more than $3 million, Mammadov said

Do you have any feedback? Contact our journalist at: [email protected]