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    Georgia Resumes Russian Gas Imports

Summary

And the government is expecting these to rise sharply.

by: Dalga Khatinoglu, Ilham Shaban

Posted in:

Natural Gas & LNG News, Europe, Corporate, Import/Export, Political, News By Country, Georgia, Russia

Georgia Resumes Russian Gas Imports

Georgia imported 6.83mn m3 (0.23mn m3/d) Russian gas in April, the first time since December 2017, and  further imports are planned for next months.

According to the economy ministry’s forecast, the country would import 144.1mn m3 Russian gas in 2019, accounting for 5.5% of the country’s total imports. The majority of imports is scheduled for 4Q19. 

Projected Russian gas intake (mn m3)

Source: Georgian govt

Georgia plans to use 2.618bn m3 gas in 2019, or 2.5% more than last year. It plans importing 2.466bn m3 Azeri gas, comprising 1.622bn m3 gas purchase and 844mn m3 as transit fee for Shah Deniz field’s gas delivery to Turkey; and 144mn m3 Russian gas. It also plans to produce 7.7mn m3 domestically.

It normally takes 10% of Gazprom’s exports to Armenia as transit fee. In 2017, gas transit to Armenia was paid for in a mix of cash and raw materials and since 2018 it is being paid in cash only. The transit fee for delivering Azeri gas to Turkey is 5%.

Deputy economy minister Natia Turnava said March 12 that after the very difficult and lengthy negotiations between the ministry and Russian giant Gazprom, the sides did agree on a lower gas price if the private sector was interested in buying Russian gas.

She said that Gazprom has also agreed to pay Georgia more for transiting its gas to Armenia, without giving further information.

Georgia's minister for the economy Georgy Kobulia told parliament February 14 that the government plans to diversify gas purchases in order to create more competition in the market.