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Statements about prices of gas selling by SOCAR to "Tbilgas" are not true - Head of "SOCAR Energy Georgia"

Oil&Gas Materials 26 March 2009 19:22 (UTC +04:00)
Statements about prices of gas selling by SOCAR to "Tbilgas" are not true - Head of "SOCAR Energy Georgia"

Azerbaijan, Baku, Mar.26 / Trend S.Aliyev /

SOCAR (State Oil Company of Azerbaijan Republic) is not considering at this moment an issue of purchase of gas-distributing company of Tbilisi "Tbilgas", but does not except this way of development of situation in the future according to its interests and the level of presence at Georgian gas market, said on Thursday Director General of "SOCAR Energy Georgia" Mahir Mammadov.

Became a participant of the Georgian gas-distributing market and being involved in large gas projects in this country and also considering the very high level of relations between countries, SOCAR intends to continue successful cooperation with the government of Georgia, said Mammadov.

Today the company is the main natural gas supplier to Georgian market and according to the contract, signed in the middle of last year's December between SOCAR and oil and gas corporation of Georgia, the company is the main supplier of "social" gas for all Georgian consumers among population and objects of electricity production. This allows to save existing low tariffs for population in the sphere of natural gas and electricity supplying at minimum for five years, said M.Mammadov.

Particularly price of SOCAR's gas for all participants of gas-distributing market of Georgia, including "Tbilgas", makes $167 for 1000 cubic meters. For objects of power generation it makes $143 for 1000 cubic meters, said the Head of SOCAR Energy Georgia.

"Against a background of it, statements made by Kazakh side about prices of gas for Tbilgas [property of Kazakh national oil and gas company "KazMunaygas"] at the rate of $400 for 1000 cubic meters can only mean that stating side have not all information about it", said Mammadov.

According to the contract gas deliveries from affiliated company SOCAR to "Tbilgas" started since this year's 15th January and 92.84 millions cubic meters are delivered to present day. Gas delivery continues in normal order. All gas delivered and delivers at the price of $167 for 1000 cubic meters. Till 15th January "Tbilgas" had received the fuel from Oil and Gas corporation of Georgia at the analogous price.

According to Mammadov contract signed by Oil and Gas corporation of Georgia and SOCAR "not mean rise of gas prices within the next five years [$167 for 1000 cubic meters for population and $143 for power generating objects].This contract works only in one direction - direction of price-cutting."

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