Azerbaijan, Baku, Aug.5 / Trend E.Ismayilov /
SOCAR Energy Georgia (a subsidiary of the State Oil Company of the Azerbaijan Republic (SOCAR)) sold about 398 million cubic meters of social gas on the Georgian Market in July, a source in the company said on Aug.5.
Under the 'social gas' gas intended for the general consumption and needed for the electricity production is meant (60 percent of the gas accounts for community consumers and 40 percent to electricity production).
SOCAR gas and gas that falls on Georgia' share under transportation of Azerbaijani gas from the Shah Deniz field through the Baku-Tbilisi-Erzirum gas pipeline, as well as gas, which Georgia receives from the transit of Russian gas to Armenia represent social gas. SOCAR Energy Georgia operates in all of these processes.
About 205 million cubic meters of gas was sold on the Georgian Market in January and July as part of transportation of Azerbaijani gas from the Shah Deniz field. SOCAR sold 142 million cubic meters of its own gas in Georgia during this period. In addition, about 51 million cubic meters of Russian transit gas was sold in the Georgian market in January to July.
SOCAR sold 7 million cubic meters of its own gas and 205 million cubic of gas, as part of the gas transit from the Shah Deniz field, in the Georgian market in July. Sale of the Russian transit gas has not occurred (it does not sell in the market during the summer) in July, the source said.
The contract on development of the Shah Deniz off-shore field was signed on 4 June 1996. Shah Deniz participating interests are: ВР (operator - 25.5 percent), StatoilHydro (25.5 percent), SOCAR (10 percent), LukAgip (10 percent), NICO (10 percent), Total (10 percent), and TPAO (9 percent). The gas mining on the field was launched in 2006. It is planned to produce more than 9 billion cubic meters of gas from the field as part of the first stage.
In compliance with the forecasts, around 850 million cubic meters of social gas will be sold on the Georgian market in 2009. The target was 1.05 billion cubic meters.
Drop in gas sales on the Georgian market is linked with cut in production in the country due to the impact of financial and economic crisis on the country, as well as abnormal weather in the territory of Georgia.
SOCAR Energy Georgia deals with oil and gas products' distribution and marketing on the Georgian market. The company sells gas and oil products on the Georgian market. SOCAR (51 percent), Petro-Trans FZCO (32.7 percent) and Ivan Chkhartashvili (16.3 percent) are the founders of SOCAR Georgia.
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