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BAKU: Georgia to Buy Iranian Gas

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  • BAKU: Georgia to Buy Iranian Gas

    GEORGIA TO BY IRANIAN GAS

    Azer Tag
    [July 15, 2004, 16:22:28]

    Georgia has arranged to start importing natural gas from Iran as early
    as January-February next year in a bid to guarantee its energy
    security and to avoid force majeure, Niki Gilauri, the Georgian energy
    minister, referring to ITAR-TASS, AzerTAj reported.

    The agreement was reached during Georgian President Mikheil
    Saakashvili's visit to Iran last week, Mr. Gilauri said.

    Georgia currently receives gas produced in Turkmenistan via Russia
    under contracts with Russian gas monopoly Gazprom and the Itera energy
    group.

    Above all, Georgia is worried about accidents occurring along the gas
    pipeline that links Georgia with Russia. Gilauri said the
    infrastructure to import gas from Iran existed but needed to be
    rehabilitated. The pipeline runs across Azerbaijan and used to supply
    Georgia with gas in Soviet times. Georgian experts think it would only
    take four months at the most to renovate the line at a cost of
    approximately $1.8 million.

    Gilauri said Iranian gas was of high quality and cost more than
    Russian gas. "But from the point of view of diversification it is
    very important to find an alternative supplier of this fuel to
    Georgia," he said.

    An agreement was also reached to supply Georgian mineral water to
    Iran, so Georgia might be able to barter this for gas, Gilauri said.

    Georgia received 1.009 billion cubic meters (bcm) of gas in 2003 - 257
    million cu m of it from under contracts with Gazprom's export arm
    Gazexport and 752 million cu m under contracts with Itera.

    In other development, Georgian Daily 'Akhalgazrda Ivereli' in its
    Tuesday edition quoted Niki Gilauri as saying that the country is
    interested in purchasing electricity from Iran. "We have the
    opportunity to buy electricity from three countries," Gilauri said
    adding, "presently, we are purchasing electricity from Russia and
    Armenia."

    He allude to Iran as the third country which is in a position to sell
    electricity to Tbilisi.

    Iran has rendered a good proposal for exports of 100 megawatts of
    electricity to Georgia, he added.

    "If Iran electricity's quality and price are suitable compared to that
    of the two other countries, then we will definitely be interested in a
    deal," he said.

    The daily further said the Georgian President Mikhail Saakashvili to
    Tehran signed a contract between Iran and Georgia in the recent trip
    for transfer of electricity from Iran to the Black Sea nation.

    The volume of transactions between Iran and Georgia in 2001 stood at
    dlrs 31.2 million, of which dlrs 19.5 million made up Iran's exports
    to Georgia and dlrs 11.7 million being the republic's exports to Iran.

    It reached dlrs 53.8 million in 2003, as Iran's exports to Georgia
    stood at dlrs 38.6 million and imports from the country to Iran toped
    dlrs 15.1 million.

    From: Emil Lazarian | Ararat NewsPress
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