[ASIA] Azerbaijan resumes gas supply to Georgia

Azerbaijan resumes gas supply to GeorgiaAzerbaijan has resumed export of natural gas to Georgia in the volume of 1.5 million cubic meters daily. Tamara Shoshiashvili, head of the PR department of the Georgian Oil and Gas Corporation (COGC), told Interfax Saturday that under the contract, signed between Georgian Oil and Gas Corporation and the State Oil Company of Azerbaijan (SOCAR), the Azerbaijani gas will be supplied until the end of 2008.

She, however, found it difficult to name the price, saying that she does not have any information about it.

As has been reported, the gas supplies to Georgia, conducted by State Oil Company of Azerbaijan, stopped in January of 2008 upon expiration of the due contract.

Before that-within 2007-State Oil Company of Azerbaijan supplied nearly 1.3 million cubic meters of gas per day by $120 per 1,000 cubic meters. Yet, due to the rise in prices on fuel on the world market, Azerbaijani side decided to raise price of gas and it was said to be $180-200 per 1,000 cubic meters during the talks for 2008.

Currently, Georgia receives 1,000,000 cubic meters of gas daily in the framework of the Shah Deniz project by the privilege price of $63 per 1,000 cubic meters and 10% of the volume of Russian gas, transported to Armenia, as a price for transit. At the same time, a number of enterprises of Georgia purchase Russian gas for $235 per 1,000 cubic meters under direct contracts.

Georgia's demand for gas is estimated at 1.8 billion cubic meters per year.

Source: Today.AZ

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