Georgia Seeks New Gas Sources
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. “Creating competition in the gas market will help reduce gas tariffs,” he said.
His speech came two weeks after Azerbaijan’s state-run Socar which dominates both Georgian whole and retail market announced that it put up prices for Georgian commercial and industrial customers by 10.5% to 95 tetri/1 m3 (36 cents at current rate).
“We are negotiating with Russia and, probably, we will purchase gas in a certain amount within the framework of preserving our energy security and energy independence,” said Kobulia, without elaborating the amount. Georgia stopped gas purchase from Russia in 2007 and currently totally depends on Azeri gas.
Last year, Azerbaijan delivered 2.5bn m3 to Georgia, part of which was delivered as 5% gas transit fee for Shah Deniz gas that was exported to Turkey (7.225bn m³ in total). Georgia normally takes 10% of Gazprom’s exports to Armenia as transit fee, but last year it was paid cash. The deputy head of the opposition made much of this, saying that 200mn m3 as transit payment was worth $40mn, compared with just $11mn cash.
Georgia also plans to issue tenders in late-2019 for developing resources in Black Sea. US Schlumberger has engaged in drilling several wells and obtained positive results, which will help meet demand, Kobulia said, adding that ExxonMobil is currently conducting a study in Black Sea. “At the end of the year it will be complete, and we will announce a tender for the development of oil and gas resources in the Black Sea,” he said. Georgia produced 30,000 metric tons of oil and 16.5mn m³ of gas in 2018.