About Civil.ge
Eng | Geo | Rus
Last updated: 10:55 - 1 May.'18
RSS
Mobile
Twitter
Facebook
U.S. Ambassador on Georgia’s Talks with Gazprom
Civil Georgia, Tbilisi / 18 Jan.'16 / 19:53

U.S. ambassador to Georgia, Ian Kelly, said that the Georgian government has been “very open with us” about energy policy and its talks with Russia’s Gazprom.

“I think it’s always important that governments be as transparent as possible about their energy policy, and they have been very open with us. We have expressed our concerns that Georgia not become too dependent on one source of energy – that they keep a good diversification of energy – and we are satisfied with their explanations,” he told journalists in Tbilisi on January 18, when asked about complaints that the government was not providing enough information about talks with Gazprom.

Asked if such talks with Gazprom are reasonable while Russia continues occupation of Georgia’s breakaway regions of Abkhazia and South Ossetia, the U.S. ambassador responded: “I think that Georgia does have a short term energy need, and I think it’s prudent to talk to all potential energy suppliers. And, of course, I take your point, we are very concerned about the occupation of Georgia by Russia. But, I think the Georgian government is very cognizant of this issue and the challenges that this presents.”

According to the Georgian Energy Ministry it holds talks with Gazprom on terms of transit of Russian gas to Armenia via Georgia – Gazprom wants to pay cash as a transit fee instead of giving Georgia 10% of gas transported to Armenia.

Negotiations also involve purchasing of additional gas from Gazprom to fill the gap amid increasing gas consumption, according to the Energy Minister Kakha Kaladze.

On top of transit fee, Georgia was also importing relatively small volumes of gas from Russia over the past five years, exception was 2013, according to Energy Ministry’s data.

Talks with Gazprom over supply of additional gas volumes have become source of opposition’s criticism of the authorities as opponents fear that it may lead to Georgia’s energy dependence on Russia and affect negatively on ties with strategic partner Azerbaijan, which supplied about 88.5% of Georgia’s gas needs in 2015.


Breakdown of Georgian natural gas consumption and imports per year and per source of supply in cubic meters between 2003 and 2015. Data for 2015 are preliminary. Source: Georgian Energy Ministry

Georgia’s total gas consumption in 2015 stood at 2.47 billion cubic meters, 13.8% and 29.5% increase compared to 2014 and 2013, respectively, according to preliminary data provided by the Energy Ministry on January 18.

753 million cubic meters of gas was consumed by households; 650 million cubic meters by – gas-fired power plants, and other commercial entities consumed over 1.07 billion cubic meters of gas in 2015.

Georgia receives gas from two sources in Azerbaijan. About 712 million cubic meters of Azerbaijani gas came in 2015 as part of the deal in frames of the BP-operated South Caucasus Pipeline, which transports gas from Shah Deniz offshore field in the Caspian Sea to Turkey via Georgia. 1.48 billion cubic meters were imported in 2015 as part of a separate contract with SOCAR, according to the Energy Ministry.

Georgia received 200 million cubic meters from Gazprom as a fee for transiting Russian gas to Armenia and on top of that Georgia also imported 75 million cubic meters of gas from Russia in 2015.
 
Georgian Energy Minister Kakha Kaladze says that further increase of supplies from Azerbaijan is not possible because of “technical” reasons, especially during the winter period when gas consumption peaks in Georgia.

President of Azerbaijani state energy company SOCAR, Rovnag Abdullayev, visited Tbilisi and held talks with PM Giorgi Kvirikashvili and the Georgian Energy Minister on January 13. Chief executive of SOCAR’s Georgian subsidiary, Mahir Mammadov, said after talks that “technical capacities of gas supplies, especially during peak period” and “how to fill the deficit” were discussed.

The Georgian Energy Minister said that “additional investments” will be required, specifically for a gas compressor station, in order to increase volume of gas supplied by SOCAR. Kaladze, however, also added that it will not be possible to complete these works this year, indicating that Georgia will require increasing supplies from Gazprom to offset the deficit. SOCAR also controls gas distribution to consumers outside capital city Tbilisi.
 
According to the Georgian Energy Ministry completion of the second phase of Shah Deniz project, expected by 2018-2019, will help Georgia to fill the existing gap in gas supplies.

Latest News
01 May.'18 10:55
We Have Moved to a New Platform
Direct Your Bookmarks to https://civil.ge.
29 Apr.'18 03:54
Ruling Party Candidate Wins MP By-Elections
Givi Chichinadze will represent Vani and Khoni single-mandate constituency in the Parliament of Georgia.
28 Apr.'18 09:40
Polls Open for Vani and Khoni MP By-Elections
48,123 voters are eligible to cast their ballots in Vani and Khoni single-mandate constituency.
27 Apr.'18 17:23
State Dept’s Europe Affairs Point Man to Visit Tbilisi
Wess Mitchell will meet senior government officials and address the NATO-Georgia Public Diplomacy Forum.
27 Apr.'18 13:45
In Quotes: Georgian Politicians on Ex-PM Bidzina Ivanishvili’s Comeback
Bidzina Ivanishvili will be approved as the Georgian Dream party chairman at the upcoming convention.
26 Apr.'18 18:15
SG Jens Stoltenberg: Georgia NATO’s ‘Very Close’ Partner
The NATO Secretary General says Foreign Ministers meeting tomorrow will recognize the country’s progress.
26 Apr.'18 14:24
Ex-PM Ivanishvili to Chair Georgian Dream Party
Prime Minister Giorgi Kvirikashvili said Ivanishvili was ‘best equipped’ to add new dynamism to the party.
26 Apr.'18 11:12
Lawmaker Proposes Criminal Liability for ‘Insult of Religious Feelings’
The parliamentary human rights committee decided to set up a working group for scrutinizing the draft law.
25 Apr.'18 17:21
New Abkhaz Government Head Appointed
Gennady Gagulia has served as the Abkhaz “prime minister” twice - in 1995-1997, and 2002-2003.
25 Apr.'18 14:43
Watchdog Improves Georgia’s Press Freedom Ranking
None of the countries of the former Soviet Union (except the Baltics) are ranked ahead of Georgia.

About Civil Georgia
Civil.Ge © 2001-2018, Daily News Online
Registered office: 2 Dolidze Str, 4-th Floor.
26