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    Georgia to Buy More Russian, Less Azeri Gas in 2020


Demand for gas in Georgia is expected to fall in 2020 after rising this year.

by: Dalga Khatinoglu

Posted in:

Europe, Corporate, Import/Export, Political, Supply/Demand, News By Country, Georgia

Georgia to Buy More Russian, Less Azeri Gas in 2020

Georgia expects to cut Azeri gas purchases by around 2.5% to 2.385bn m3 in 2020, while upping supplies from Russia by 18% to around 170mn m3, its economic development ministry announced on December 26.

Overall imports should come to around 2.57bn m3 in the year, it said.

Georgia is set to get 874mn m3 of Azeri gas in 2020 from the BP-led Shah Deniz project, up 3.5% yr/yr, and a further 511mn m3 from Azerbaijan’s national oil company Socar, up 6.9% yr/yr. The Shah Deniz supplies are delivered in lieu of a fee for Georgia transiting the field’s gas to Turkey.

Demand for gas in Georgia rose by 2.5% yr/yr in 2019 to 2.618bn m3. The ministry forecasts a decrease to 2.54bn m3 in 2020, with this amount including 1bn m3 consumed in the household sector, 600mn 3 by power plants and 911mn m3 by commercial and industrial users.

Georgia’s own meagre gas production is slated to more than double to 17.9mn m3 next year, according to the ministry. Grid losses are expected to decline by 6.9% to 35mn m3.