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Azerbaijan Stands Ready to Increase Gas Exportation to Georgia

Oil&Gas Materials 16 April 2007 13:03 (UTC +04:00)
Azerbaijan Stands Ready to Increase Gas Exportation to   Georgia

Azerbaijan, Baku / corr. Trend N.Kirskhalia, S.Aliyev/ Russia is to terminate gas delivery to Georgia and Armenia during the night from 16 to 17 April. The Russian side explains it by necessary repair work to the north-south gas pipeline, a Trend special correspondent in Tbilisi reports referring to the Georgian Oil and Gas Corporation.

Facing threats of the termination of Russian gas delivery, the Georgian side has already held negotiations with Azerbaijan and reached an agreement to increase gas delivery from the Shah Deniz field via the South Caucasus Pipeline. "We can assure consumers that they will not be in demand of gas and the public will be fully provided with gas," the same source stated.

Presently 1 mln cu.m of gas is delivered to Georgia via the SCP. The intention is to deliver the additional gas within several days.

A Government source in Azerbaijan stated on 15 April that the country will increase the gas delivery to Georgia from 16 April. "The increased volume of gas will be delivered within several days and will be compensated at the expense of future fuel supplies," the same source said. In other days of the month, Georgia will receive a reduced volume of gas.

The volume of guaranteed gas received by Georgia from Shah Deniz in 2007 for $63 per 1000 cu.m. equals 250 mln cu.m. Additional volumes and their price are under negotiations.

According to an agreement reached with Azerigaz JSC, Georgia received gas from Azerbaijan during the first three months of 2007. According to this agreement, 105 mln cu.m. of gas has been delivered. Georgia received this gas for $120 per 1000 cu.m. On going delivery of Azerbaijani gas to Georgia is currently being discussed.

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