BAKU, Azerbaijan, November 9. Gas cross-border interconnection points in Georgia are nearing their maximum physical operating capacities, Trend reports via the European Commission.
The organization notes that in the gas sector, Georgia engages in long-term bilateral supply contracts, forming a key aspect of its energy strategy.
The Commission emphasizes the need for the implementation of the natural gas market concept, which includes establishing a natural gas exchange and an over-the-counter auction platform. Although the Georgian gas exchange exists, it is not yet operational, contributing to a concentrated gas market.
Gas-fired thermal power plants in Georgia predominantly rely on gas imports from Azerbaijan, aligning with the country's legislative adjustments to the Regulation on wholesale energy market integrity and transparency. Georgia plays a pivotal role in hosting essential gas and oil pipelines for the Southern Gas Corridor.
Despite its reliance on gas imports from Azerbaijan and Russia, the latter contributes only marginally to Georgia's gas supply. The European Commission underscores the importance of Georgia implementing regulations for the security of gas supply, particularly noting the absence of gas storage, which poses potential risks during high-demand peak days.
Natural gas deliveries by Azerbaijan’s state oil company SOCAR to Georgia have plummeted in the third quarter of 2023, as compared to the same period in 2022.
SOCAR’s data reveals that the company supplied around 71 million cubic meters of gas to this country in 3Q 2023, versus 174 million cubic meters in the third quarter of 2022, showing a 59.2 percent decrease.
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