GEORGIAN LEADER SIGNALS GAS DEAL WITH AZERBAIJAN
Civil Georgia, Georgia
Nov 29 2006
President Saakashvili hinted on November 29 that Azerbaijan is willing
to provide Georgia with natural gas, as Tbilisi desperately seeks
alternative supplies to ease energy dependency on Russia.
President Saakashvili met with Azeri counterpart Ilham Aliyev on the
sidelines of the CIS summit in Minsk on November 28.
"I think this winter will become a historic example of brotherly
relations between Azerbaijan and Georgia," Saakashvili told reporters
in London, where he arrived overnight after Minsk summit.
He neither specified whether any concrete deal was reached during
the meeting, nor elaborated further details of talks.
"During the meeting, the two Presidents discussed issues related to
further enhancement of bilateral ties in various fields. Other issues
of mutual interests were also discussed," an official Azerbaijani
news agency AzerTag reported without any other details.
Meanwhile, Georgian Prime Minister Zurab Nogaideli, who accompanied
by Energy Minister Nika Gilauri, will pay one-day working visit to
Azerbaijan on November 30, said that Georgia may achieve favorable
"re-contracting" of Shah-Deniz gas deal.
Georgia wants to buy more gas from Azeri Shah-Deniz field than it is
currently envisaged by the contract – Turkey and Azerbaijan are also
part of this contract.
Georgia is expected to receive 200 million cubic meters of gas as
a transit fee, plus 50 million cubic meters at a reduced price from
the South Caucasus Gas Pipeline, which will transport Azeri gas to
Turkey via Georgia next year.
PM Nogaideli noted that in the meantime, gas distribution companies
in Georgia are currently in talks with the Gazprom’s export arm.
"These talks with Gazexport are being held in Yerevan [Armenia] because
it was impossible to hold these talks in Moscow for various reasons,"
PM Nogaideli said.
Russia’s monopoly Gazprom told Georgia it wants USD 230 per 1000
cubic meters of gas in 2007 instead of current USD 110.
PM Nogaideli also noted that in late December a joint Georgian-Iranian
economic commission will gather in Tehran with his participation to
finally define terms of gas supply from Iran.
U.S. Ambassador to Georgia John Tefft warned recently that Washington
does not approve of Georgia having long-term strategic energy-related
cooperation with Iran.
Georgia conducted its first emergency gas import from Iran in January,
2006 after twin blasts on two gas pipes in Russia’s North Ossetia
disrupted supplies in Georgia.
Capacity of Georgian-Azerbaijani gas pipeline, which was used for
import of Iranian gas in a period from January 30 to February 5,
2006, was 4 million cubic meters per day which is roughly a half of
the amount needed for Georgia per a day.
Sources close to the government say Tbilisi tries to maximally reduce
share of Russian gas in total Georgia’s consumption.
But some opponents have warned that by totally rejecting Russian gas
Georgia may become dependent on another supplier.
"The government was telling us that they are trying to diversify energy
supplies, but instead it seems that they are just changing them. Real
diversification means to have various supplies, meaning that country
will not depend on a single energy provider," Davit Ebralidze, energy
expect affiliated with the opposition Republican Party, told RFE/RL
Georgian Service on November 29.