Azerbaijan Completing Supplying Georgia with Gas

Oil&Gas Materials 31 March 2007 14:07 (UTC +04:00)

Azerbaijan, Baku/ Trend , corr. S. Aliyev / Azerbaijan is expected to complete its gas supplies to Georgia today within the agreement previously reached with "Azerigaz" CJSC. According to the mentioned agreement, Azerbaijan was to supply Georgia with 105 mln. cubic meters of gas, and the whole its volume is expected to be transported within today, a source in the Azerbaijani Government has told Trend today. The gas price for Georgia is $120 per 1.000 cubic meters.

Resuming Azerbaijan's own gas supplies to Georgia is the subject of the negotiations being held between the Azerbaijani and Georgian parties.

Georgia is presently receiving some 2.3 mln. cubic meters of gas, with 1.3 mln. out of them supplying in accordance with the agreement with "Azerigaz" CJSC available via the oil pipeline - Baku-Tbilisi, and about 1 mln. cubic meters of gas produced just from the Azerbaijani offshore gas condensate field of Shah Daniz via SCP (South Caucasian Gas Pipeline).

The guaranteed volume of the gas, which Georgia is to receive from Shah Daniz in 2007 is 250 mln. cubic meters at a price of $63 per 1.000 cubic meters. All other additional gas volumes and their prices are the subject of the further negotiations.

About 962 mln. cubic meters of gas are needed to provide the Georgian population with gas till the need of 2007. IF Azerbaijan resume supplying Georgia with about 2.5 mln. cubic meters a day, then it will enable fully covering this demand, and Georgia even could repudiate to import Russian gas for their population.