SOCAR to increase number of consumers of gas distribution networks in Georgia

Oil&Gas Materials 8 June 2009 16:38 (UTC +04:00)

Azerbaijan, Baku, June 8 / Trend , E.Ismayilov/

Georgian construction companies will provide their proposals on construction and renovation of networks in the framework of the first stage of the increasing of number of consumers of 31 gas equipment of the SOCAR Energy Georgia (SOCAR's daughter company), head of the company Mahir Mammadov said.

"Projects on increasing the number of consumers have been received and considered. Thirteen Georgian construction companies have to provider their proposals on the matter before June 15. Georgian companies will also project the works," Mammadov said.

The most profitable proposal will be preferred, Mammadov said.

The company is planning to increase the number of subscribers of those networks to 56,000 from the current 60,000. In the first phase, the number of subscribers will increase by 15,000, but gradually, and contractors for the work will be determined gradually.

In three years, the company plans to increase the number of subscribers of gas distribution networks to 150,000.

The average daily consumption of gas distribution networks that are in the management of SOCAR is 5-6 million cubic meters. In general, networks consume 60-70 million cubic meters of gas yearly. On average 1,000 cubic meters of gas a year account per user, Mammadov said.

On Dec. 26, SOCAR and the Georgian Government signed an agreement to operate 30 farms, and gas distribution networks in the Kakheti, Mtskheta-Mtianeti, Shida and Kvemo Kartli, Adjara, Guria, Imereti, Samegrelo regions of Georgia. These networks are operated by 24 companies.

The total investment to the project is $40 million. The amount of invested funds exceeded $3 million. These funds were invested to purchase of metal and plastic pipes, certain infrastructure work have been done in Ajara (the process to provide gas to Ajaria was began in mid-2008), design work and etc., said Mammadov.

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.

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