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Georgia Intends to Continue Gas Import from Azerbaijan by late 2006

Oil&Gas Materials 27 March 2007 16:02 (UTC +04:00)

Azerbaijan, Baku /corr Trend S.Aliyev / Georgia intends to extend an agreement with Azerbaijan on gas delivery by Azerigas company via old gas pipelines. The Azerbaijan Government informed that it is planned to maintain the volume of gas delivery in the previous volume (30mln cu m of gas a month).

Experts note that the continuation of gas delivery from Azerbaijan to Georgia in accordance with this agreement will enable the latter to refuse from the Russian gas imports. At present time almost half of Georgia's demand in 'blue fuel' is covered at the expense of the Azerbaijani gas. Following transition to spring-summer season gas consumption in Georgia will decrease and it will enable Georgia to refuse from Russian gas imports. Moreover, by the end of the year Georgia will receive additional 250mln cu m of gas from the Shah Deniz field.

Azerbaijan is currently supplying Georgia with some 1.2-1.3 mln. cubic meters of gas per day. In January-February, 2007, Azerbaijan provided Georgia with 30 mln. cubic meters of gas. The price of the Azerbaijani gas for Georgia is $120 per 1.000 cubic meters. Georgia purchases gas from Russia as the price of $235 per 1,000 cu m.

Additional volume and cost are the topic of talks.

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