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Azerbaijan Resolve Technical Problems of Gas Supply to Georgia

Oil&Gas Materials 11 January 2007 14:44 (UTC +04:00)

At present, there are some technical problems relating to the commencement of natural gas deliveries from Azerbaijan to Georgia. The Azerigas Gas Company informed Trend that although delivery was to begin at 09:00 am. [Baku time] on Thursday, 11 January, it is expected some time in the afternoon.

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. Earlier representatives of Georgia and Azerbaijan stated that the price of gas will reach $120 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 to separate negotiations between the two parties.

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