GEORGIA REPAIRS DAMAGED NATURAL GAS PIPELINE

Prime-Tass English-language Business Newswire
December 21, 2006 Thursday 12:23 PM EET

A damaged natural gas pipeline in northeastern Georgia has been
repaired, an official with Georgian Oil and Gas Corporation, the
company responsible for the pipeline, told ITAR-TASS late Wednesday.

Russian natural gas monopoly Gazprom is expected to resume gas supplies
via the pipeline Thursday, the official said.

The Northern Caucasus-Zakavkazye pipeline was shut down following a
landslide Monday, forcing Russia to supply gas to Georgia and Armenia
via a smaller reserve pipeline.

Gazprom currently supplies gas to Armenia and Georgia via the Northern
Caucasus-Zakavkazye pipeline at a price of U.S. $110 per 1,000 cubic
meters. The pipeline has the capacity to transport 16 million cubic
meters of natural gas per day. In January, Gazprom suspended gas
supplies to Georgia and Armenia for a week after an explosion along
the pipeline.