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Shah-Deniz Gas Flows to Georgia
Civil Georgia, Tbilisi / 17 Mar.'07 / 18:36

Gas import from Azerbaijani’s Shah-Deniz field was launched on March 17 through the South Caucasus Pipeline on March 17, the Georgian Oil and Gas Corporation (GOGC) said on Saturday.

Launch of gas import from the Shah-Deniz field was initially planned for last December, but was delayed because of technical problems at one of the drilling wells. In late January Georgia started to receive gas from Shah-Deniz but the import was suspended again because of technical problems.

According to the agreement, Georgia will receive 250 million cubic meters of gas from Shah-Deniz field – 200 million of which is a fee for transit, and 50 million to be bought at the preferential price of USD 55 per 1000 cubic meters in 2007.

But Georgia seeks to increase its share of Shah-Deniz gas, but has so far failed to agree with Turkey over terms on which the latter will give up part of its quota – 800 million cubic meters – in favor of Georgia.

Turkish Prime Minister Turkey Recep Tayyip Erdogan said on February 7 while visiting Tbilisi that Ankara tries to allocate part of its share to Georgia. Final decision is expected by July.
 
U.S. Deputy Secretary of Energy Clay Sell, who was visiting Georgia on March 15-16, said that he hopes Georgia’s share in the Shah-Deniz project will increase in the future.

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