Georgia Oil and Gas, Russia Oil and Gas
Georgia will refuse to purchase natural gas from the Russian concern Gazprom.
The technical and economic assessment of the North-South energy corridor Russia-Georgia-Armenia-Iran will be ready in H2 2017, the Minister of Energy, A. Novak, said.
Georgia doesn’t rule out announcement of agreement with Gazprom on gas transit to Armenia in case of bilateral consentEdited by Rhod Mackenzie / 2017-01-31 02:00:52
The Georgian side can’t independently make a decision to disclose details of the agreement with Gazprom at the rate of the Russian gas transit to Armenia, said the Deputy Prime Minister, Ener
The contract reached by Georgia and Gazprom doesn’t bind Georgia purchase the additional volumes of the Russian gas.
Gazprom made an offer to Georgia by the mutually beneficial conditions of gas transit to Armenia and gas supply to Georgia, Gazprom export reports.
The Minister of Energy of Georgia, K. Kaladze, said that his meeting with the representatives of Gazprom upon the issue of signing the gas agreement had no result.
Previously, "Rosneft" and Skyland Petroleum signed a Heads of Agreement for the sale of "Rosneft" up to 29% in LLC "Taas-Yuryakh Oil and Gas" and the creation of CG to develop the field in Yakutia.
The Australian company Skyland Petroleum plans to begin to supply China with oil and gas from Russia, Tajikistan and Georgia in 2016. As the Xinhua news agency reports, chairman of the company David Robson stated this in Shanghai on Wednesday.
Gazprom hasn’t managed to agree with Georgia on the transition to cash payments for gas, supplied to the country. As a result, Tbilisi, as before, will receive 10% of transit gas coming to Armenia from Russia. Azerbaijan agreed to supply additional volumes for Georgia, although last year it faced with a deficit of produced gas. According to experts, Tbilisi can afford not to make concessions to Gazprom, while Baku has access to Russian gas supplies and due to them can increase exports to Georgia.
Georgia doesn’t need additional volumes of gas imports from Russia and Iran after signing the contract for the delivery of 500 million cubic meters from Azerbaijan, the Deputy Prime Minister, Minister of Energy of Georgia Kakha Kaladze said last week. "The gas supply of the country will be provided for several years," - the official said. On Friday, the Government of Georgia and the Azerbaijani state oil company SOCAR signed a corresponding agreement. Thus, the supply of gas from Azerbaijan, taking into account the current contract, could rise to 1.5 billion cubic meters. Prior to that, SOCAR delivered about 800 million cubic meters of gas from the Shah-Deniz field. Georgia needed additional gas, as its consumption in the country increased by 40% since 2012, to about 2 billion cubic meters per year.
The delay of the "Southern Gas Corridor" construction was absolutely unacceptable at the current level of gas prices, but the project was being implemented according to schedule and would probably be completed a little earlier than expected, the vice-president of the European Commission's Energy Union Maroš Šefčovič stated at a conference in Brussels.
Georgia plans to agree with Gazprom on the growth of gas imports. According to the Minister of Energy, K. Kaladze, the stake of the Russian gas in the total volume of consumption of the county might grow from 12% to 20%.
We keep negotiating with Gazprom aiming for the supply of additional volumes of gas to cover the increased need in Georgia, the Minister said hoping to reach an agreement in the framework of the meeting in Vienna on January 20th.
The Minister explained the necessity to increase the supply from Russia by the gas deficit in winter. Azerbaijan, the main strategic partner of the country, can’t ship larger volumes to Georgia by technical reasons as the pipeline doesn’t allow, the Minister of Energy said.
Currently Gazprom demands to turn 10% stake from the transit gas supplies to Armenia into monetary form as there are other ways of supplies to Armenia. Meanwhile Georgia doesn’t want to lose the status of a transit country as that will complicate the energy situation.
Georgia has been holding negotiations with Russia on the growth of import since September 2015.