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Union of Georgian Oil Product Importers reveals LNG consumption issues

Oil&Gas Materials 13 April 2020 18:19 (UTC +04:00)
Union of Georgian Oil Product Importers reveals LNG consumption issues

BAKU, Azerbaijan, April 13

By Tamilla Mammadova - Trend:

In recent years, the consumption of liquefied natural gas (LNG) has increased in Georgia, but the industry is developing incorrectly due to a number of important factors, Trend reports citing a statement by the Union of Oil Product Importers of Georgia regarding the import and sale of liquefied natural gas on the country's market.

The statement presents two main problems of this industry including import and product quality. The organization emphasized that imported LNG does not meet any standards.

“In the first quarter of 2020, imports of liquefied natural gas amounted to 12,200 tons in Georgia, which is 6,000 tons or 96.8 percent more than the same period last year. Bulk of this volume - 94.3 percent - was imported from Russia," said the statement.

According to the union, Georgia imported liquefied gas under various product codes. In the first quarter of 2020, 3,700 tons, or 30.3 percent of the total imports of liquefied gas, were imported under the commodity code 2901. This code does not apply to excise tax, since earlier the above products were used in the chemical industry, and their import was carried out in minor amounts.

"Currently, the volume of products imported under this code has increased significantly, and this product is sold as liquefied gas for motor vehicles,” the union said.

There is no mandatory quality standard for liquefied gas, which is a serious problem, noted the union.

“The European Union has the standard EN-589, which from January 1, 2018 also applies in Russia, Ukraine and almost all post-Soviet countries. At present, we do not have any information on whether the product imported and sold in Georgia as a liquefied gas has the quality that meets recognized and mandatory requirements. In addition to the above, facts of the import of unaccounted goods, in particular from the Russian Federation, were revealed,” the statement said.

To solve existing problems, the business association calls on the Georgian government to approve relevant legislative changes and introduce a mandatory quality standard, using the experience of other countries.

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