Georgia Confirms Gas Supply Deal with Azerbaijan

Georgia Confirms Gas Supply Deal with Azerbaijan

Georgia has confirmed details of its recently signed gas deal with Azerbaijan, according to which Georgia will receive up to 500mcm/year of natural gas from the Azerbaijani national oil company SOCAR until 2030, Agenda.GE reported. The deal will raise the total volume of gas that Georgia receives up to 1.3bcm per year.

The deal also reduces the price of commercial gas supplied to Georgia to $35-$40 per 1,000cm of natural gas. The price of non-commercial gas will also be lowered.

Georgian Energy Minister, Kakha Kaladze, noted that due to the country’s high demand for natural gas that had doubled since 2010 to 2.47bcm/year in 2015, a 13.8 % increase compared to 2014, it had to seek other ways for additional supplies, Civil.GE informed.

Previously, last autumn, the Georgian Energy Ministry was considering import of additional gas from Russia’s state-owned giant Gazprom on top of what the country was already importing. However, the deal with SOCAR helps Tbilisi to meet its demand and the country needs no additional volumes of gas to be shipped from Russia for now, Minister Kaladze added.


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