SOCAR releases forecast on gas sale on Georgian market

Oil&Gas Materials 22 June 2009 17:13 (UTC +04:00)

Azerbaijan, Baku, June 22 / Trend , E. Ismayilov/

Nearly 800-850 million cubic meters of gas will be sold to subscribers on the Georgian market in 2009 compared to planned 1.05 billion cubic meters, SOCAR Energy Georgia (SOCAR subsidiary) director Mahir Mammadov said.

The fuel source is the gas produced by SOCAR which accounts for Georgia as a part of transport of fuel from Shah Deniz via Baku-Tbilisi-Erzurum and also the gas received from transit of Russian gas to Armenia. All these processes are operated by SOCAR Energy Georgia.

The sale of commercial gas is also expected to slow down. About 300-350 million cubic meters of gas will be sold on Georgian market this year compared to the projected 450 million cubic meters, of which about 150 million cubic meters will account for Azerbaijani gas and the remainder for gas purchased from Russia .

Decline in gas sale on the Georgian market is related to the reduced production in the country because of the financial and economic crisis and also irregular weather conditions in Georgia.

In January-May, over 166.8 million cubic meters of gas was sold on Georgian market as a part of the transport of Shah Deniz gas. Nearly 132.7 million cubic meters of SOCAR gas was sold in Georgia for five months. Georgia received 51 million cubic meters of transit Russian gas in January-May.

The contract on development of Shah Deniz field was signed on June 4, 1996. The parties to the contract are ВР (operator - 25.5 percent), Statoil (25.5 percent), SOCAR (10 percent), LukAgip (10 percent), NICO (10 percent), Total (10 percent), and TPAO (9 percent).

The gas production on this field began in December 2006. Over 9 billion cubic meters of gas is expected to be produced as a part of the Shah Deniz-I.  

SOCAR Energy Georgia deals with distribution and marketing in oil and oil products market of Georgia. Company sells oil products and gas in the Georgian market. Co-founders of SOCAR Georgia are SOCAR - 51 percent, Petro-Trans FZCO - 32.7 percent and Ivan Chkartishvili - 16.3 percent.

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