Azerbaijani Gas to be Priority for Georgia’s Future Imports – Minister

Azerbaijani Gas to be Priority for Georgia’s Future Imports – Minister July 1, 2018Leave a comment

Azerbaijani gas might be considered to start with for Georgia\’s future imports, Georgia\’s Energy Minister Ilia Eloshvili said within the exclusive interview with Trend.

“To view figures, in Georgia the gas demand included 2.2 billion cubic meters in 2016 where SOCAR\’s [Azerbaijani state oil company] share amounted to 59 percent, Shah Deniz gas C 35 % and Russian gas from transit service C 5 %, local extraction was rather insignificant making 0.3 % during the total gas supply,” noted the minister.

Eloshvili remarked that this picture may just be maintained in 2017-2018.

“By 2026, we suppose that the economical trend in Georgia and expiration in the supplemental gas contract will motivate us to hunt additional gas volumes,” he stated. “Of course, we appreciate our partnership and Azerbaijani gas will probably be thought about to begin with but this will also be based upon other market circumstances if any.”

In March 2016, Georgia and SOCAR signed a on supplying additional volumes of Azerbaijani gas into the country. The agreement envisages delivery of 500 million cubic meters of gas every year from Azerbaijan\’s Shah Deniz gas and condensate field.

The get progression of the Shah Deniz offshore field was signed on June 4, 1996. The field’s reserve is estimated at 1.2 trillion cubic meters of gas.

The shareholders are: BP, operator (28.8 percent), AzSD (10 %), SGC Upstream (6.7 percent), Petronas (15.5 percent), Lukoil (10 %), NICO (Ten %) and TPOC (19 percent).

As a part of the implementation with the Shah Deniz 2 project, the annual gas production volume improves from 9 billion cubic meters to additional 16 billion cubic meters.

The value of the other stage of your field\’s development is estimated at $25 billion. It is actually planned to find the first volumes of gas inside project in 2018 and this will function as the main source for the Southern Gas Corridor project, which envisages transportation of gas to Turkey and European markets.

Source: trend

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