SOCAR to considerably up investment in gasification & rehabilitation of Georgia's gas distributing networks

Oil&Gas Materials 21 August 2009 17:08 (UTC +04:00)

Azerbaijan, Baku, Aug. 21 / Trend , E.Ismayilov/

The State Oil Company of Azerbaijan Republic (SOCAR) plans to nearly double the amount of investment required in the gasification and the rehabilitation of infrastructure of 31 gas units in Georgia belonging to SOCAR Georgia Gas (a subsidiary of the SOCAR Energy Georgia), a source in SOCAR Energy Georgia said on Aug. 21.

"At the initial stage, the estimated minimum amount of investment in this project was $40 million, this was a minimum limit, the cost of the gasification, regarding rehabilitation of distribution networks may take approximately $70-80 million," said the source.

At present a gasification process is ongoing and it is planned to start gas supplies in many rural areas in September.

Earlier, Head of SOCAR Georgia Gas Anar Mammadov said demand of the gas filling stations of the company is about 80-90 million cubic meters per year. The company plans to increase number of subscribers from 60,000 to 150,000 in total, Mammadov said earlier. In January-June, the company delivered 40 million cubic meters of gas to its gas-distributing networks. It is planned to deliver the same amount in the second half of 2009, as well, Mammadov said.

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

In April, SOCAR Energy Georgia acquired a gas distribution network in the Marneuli region populated by Azerbaijani community.  Marneuli has 31 gas supply grids operated by SOCAR Georgia.

Gas distribution networks in Marneuli were previously owned Wissol, which bought gas from SOCAR and was selling it in Marneuli. Now the whole cycle of works in this direction will be implemented by SOCAR Energy Georgia.

40-million investment program covers purchase, development and management of distribution networks.

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