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Azerbaijan May Re-Establish Own Gas Supply to Georgia

Oil&Gas Materials 10 May 2007 21:01 (UTC +04:00)

Azerbaijan, Baku / corr. Trend S.Aliyev / If necessary, Azerbaijan may re-establish the own gas supply to Georgia, a government source stated. "The issue may be reconsidered on demand by the Georgian side," the same source said. Presently Georgia receives gas from Shah Deniz field.

In April Azerbaijan terminated the gas supply within the agreement with Azerigaz JSC of Azerbaijan. According to the agreement, Azerbaijan had to deliver 105 mln cu.m of gas to Georgia. The cost of the gas for Georgia is $120 per thousand cu.m.

The guaranteed volume of gas, which Georgia is to receive from Shah-Deniz at the price of $63 per 1,000 cu m of gas, will reach 250 mln. cu m in 2007. Any additional gas and their prices are subject to further negotiations between Azerbaijan and Georgia.

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