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Azerbaijan in Preparation for Gas Deliveries to Georgia

Oil&Gas Materials 10 January 2007 12:43 (UTC +04:00)

Azerbaijan is preparing for the implementation of gas delivery to Georgia. Trend has been informed by Azerigas on Wednesday 10 January that the daily gas delivery will equal 3mln cu.m.

Azerbaijan will supply Georgia with gas within ten days on a monthly basis. According to the agreement between the two countries, the gas supply will be carried out from the tenth day to the twentieth of each month. The total average volume of daily gas will be 1 mln. cu.m, as stipulated in the agreement signed during the visit of Georgian Prime Minister, Zurab Nogaideli to Baku at the end of 2006.

Azerbaijan will supply Georgia with gas produced by SOCAR from its own fields. Representatives of Georgia and Azerbaijan earlier said that the gas price will reach $120 per 1,000 cu.m.

Presently, Russian gas giant, Gazprom, is Georgia's only gas supplier. The price of Russian gas has been fixed at a rate of $235 per 1.000 cu.m.

This year, Azerbaijan is expected to provide Georgia with gas to be produced from the Azerbaijan offshore gas condensate field Shahdaniz. The guaranteed gas volume which Georgia will receive at the price of $63 per 1,000 cubic meters in 2007 will reach 250 mln. cu.m. Additional gas volumes and their prices are subjects of separate negotiations between the two parties.

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