SOCAR divulges forecasts of gas deliveries to Georgia's gas-distributing networks in 2009

Oil&Gas Materials 30 April 2009 13:30 (UTC +04:00)

Azerbaijan, Baku, April 30 / Trend , E.Ismayilov/

The State Oil Company of the Azerbaijani Republic (SOCAR) will deliver roughly 60 million cubic metres of gas to 31 gas distributing networks in Georgia by late 2009, 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 plan to deliver 60 million cubic metres of gas to the gas-distributing networks before in 2009," Mamamdov said.

Averagely, annual delivery of the Azerbaijani gas to the networks is 5-6 million cubic meters of gas. Moreover, some 1.5 million cubic meters falls to commercial deliveries as part of these networks (commercial organizations covered by the networks), Mammadov said.

Gas consumption is cut in Georgia due to a summer season. At present SOCAR provides roughly 2 million cubic metres of gas to Georgia per day.

Volume of the liquefied gas was also reduced on the Georgian market. Roughly 1,000-1,200 tons of the liquefied gas is delivered to Georgia each month.

The SOCAR subsidiary, SOCAR Energy Georgia, and the Georgian government inked a contract in December to supervise gas-distribution companies. Under the agreement, SOCAR Energy Georgia will supervise 30 Georgian gas-distribution companies located in the Kakheti, Mtskheta-Mtianeti, Shida and Kvemo Kartli, Ajaria, Guria, Imereti and Samegrelo regions. This network is exploited by 24 companies.

The company is currently conducting work to specify a contractor which will reconstruct these distributing networks. This work will be done as part of an investment program worth $40 million. 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. It is planned to carry out another increase within the next two years.

In April, the SOCAR Energy Georgia (subsidiary of the State Oil Company of Azerbaijan Republic) owned one more gas-distributing network in the Georgian Marneuli region densely populated by Azerbaijanis. Earlier, Wissol company was the owner the gas-distributing network in Marneuli. This company purchased gas from SOCAR and sold it in Marneuli. At present SOCAR Energy Georgia will be engaged in this activity.

"At present we are getting familiarization with management facilities of these networks and the distributing centers," Mammadov said.

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 earlier.

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