Assets of Georgian Oil and Gas Corporation may be split due to reforms

Oil&Gas Materials 27 March 2021 00:08 (UTC +04:00)
Assets of Georgian Oil and Gas Corporation may be split due to reforms

BAKU, Azerbaijan, March 27

Tamilla Mammadova – Trend:

The assets of Georgian Oil and Gas Corporation (GOGC) have to be split due to ongoing reforms in the energy sector, Trend reports via Georgian media.

As reported, the gas transmission network will become part of another organization.

Davit Narmania, the Chairman of the Georgian National Energy and Water Supply Regulatory Commission (GNERC), presented the draft resolution on the separation of the gas transmission operator at a government session.

According to GNERC, after the adoption of the new resolution, Georgian legislation will be in line with the requirements of the European Energy Union.

"The Oil and Gas Corporation will no longer own the gas transmission network. It will transfer this network to another company. This is the first phase of reforms in the natural gas sector. By the end of 2021, distribution network operators will be also separated from supply activities. Accordingly, we will get a full transposition of energy legislation and we will already be in line with the basic regulations of the European Union," said GNERC member Giorgi Pangani.

In 2019, the total revenue of the Oil and Gas Corporation was 880 million lari ($263.3 million). The removal of the natural gas transmission network from the corporation is likely to reduce the company’s revenue.

Late in 2019, the corporation’s assets were 1.88 billion lari ($563.3 million).


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