Industry and Energy

Industry and Energy

Georgia to buy Azeri gas for $169 per 1,000 cubic meters over 5 years

21 January 2010 07:54 (UTC +04:00)

As local newspaper Resonance reported, Georgia will receive 250 million cubic meters of gas as transit tax for Azeri gas exports from Shah Deniz, and will get another 300 million cubic meters for $57 per 1,000 cubic meters in 2010.

Accordign to the article, Georgia also takes off 200 million cubic meters of gas as transit tax for Russian gas exports to Armenia per year and this transit tax will reach 500 million cubic meters next year.

Despite the increase in inflow volumes, the price of natural gas in Georgia remains unchanged, experts said.

Although the price of natural gas varies between $250 and $300 per 1,000 cubic meters, Georgia will buy Azerbaijani gas for 169 per 1,000 cubic meters under a long-term agreement covering the next 5 years.

According to energy expert David Ebralidze, gas bills for the population are not expected to drop because there is healthy competition in the domestic energy market.

Anton Samsonidze, deputy director of SOCAR-Georgia Gas told APA that the company laid more than 1,000 kilometers of gas pipelines in Georgia and provided gas supply to more than 50 000 families in 2009.

"We operate in 30 regions of Georgia. We invest more than GEL 10 million in laying over 1,000 kilometers of gas pipelines this year,â€ he added.