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Kazakh KazTransGas intends to get back its management in Georgian assets

Oil&Gas Materials 1 August 2012 13:16 (UTC +04:00)
Kazakh 'KazTransGas' is in talks with the Georgians to get back its management in the KazTransGas-Tbilisi company, an anonymous source in the Kazakh company told Trend on Tuesday
Kazakh KazTransGas intends to get back its management in Georgian assets

Kazakhstan, Astana, July 31 / Trend, D. Mukhtarov /

Kazakh 'KazTransGas' is in talks with the Georgians to get back its management in the KazTransGas-Tbilisi company, an anonymous source in the Kazakh company told Trend on Tuesday.

"KazTransGas intends to get back its management in 'KazTransGas-Tbilisi'. At present negotiations are underway on this issue with the Georgian side," the source said.

Since 2009, the Georgian National Regulatory Commission for Energy and Water Supply has appointed a special manager to KazTransGas-Tbilisi which now manages all the activities of the gas distribution network of the Georgian capital.

According to informed sources, the reason for the change of management is down to the company's new debt level to the sum of 80 million lari, including 68 million lari to the Georgian Oil and Gas Corporation for natural gas supply.

As was previously reported, in May 2006 the Kazakh firm KazTransGas became the owner of the assets of the Tbilisi gas distribution company JSC Tbilgazi after winning the investment bid. The investor paid $12.5 million for the company.

KazTransGas owns the gas distribution network in the capital of Georgia, the total length of which is 2000 kilometres. The company serves more than 210,000 subscribers, and 3000 communal facilities, as well as about 400 large industrial enterprises since it entered the Georgian market. Since May 2006, JSC KazTransGaz invested more than $100 million in the KazTransGas-Tbilisi company.

On May 16, 2009 the Energy Ministry of Georgia stated that the Kazakh company KazTransGaz-Georgia which has a full stake in the Tbilisi gas distribution system, accumulated debts totalling $48 million, after which it was decided to appoint a special manager.

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