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TBILISI: In order to attain energy independence

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  • TBILISI: In order to attain energy independence

    24 Saati, Georgia
    Sept 9 2008



    In order to attain energy independence

    by Tamar Khorbaladze

    Russia using energy resources for political pressure

    The international community presently expects Russia to honour the
    six-point agreement. According to the most optimistic predictions, the
    Russian troops will pull out of the parts of Georgia outside the
    separatist provinces. However, along with the military force, Russia
    can also use its energy resources for pressure. It has blatantly tried
    to exert this kind of pressure not only on Georgia but also on the EU
    countries.

    [Passage omitted: Temporary suspension of Russian gas supplies to
    Poland and Germany coincides with the meeting of the European Council
    in Brussels]

    For this reason, the search for alternative sources of energy supplies
    was one of the central topics of the EU summit. Analysts believe that
    the same question was the main factor behind US Condoleezza Rice's
    trip to North Africa. They have suggested that the first visit by a
    high-ranking US official to Libya in 55 years was aimed at preventing
    Russia and its Gazprom form establishing a monopoly over the country's
    gas reserves. Energy resources were also among the main subjects
    discussed during US Vice President Dick Cheney's visits to Azerbaijan,
    Georgia, Ukraine and Italy. However, while the West is looking for
    ways of reducing its dependence on the Russian energy supplies, Moscow
    continues to use energy resources as a lever for political pressure.

    Georgia relying on electricity produced domestically

    There are only a few months left before the winter comes. Is Georgia
    ready to survive the likely energy pressure? The government is
    optimistic. "There are no problems whatsoever in Georgia in terms of
    electricity and natural gas", Georgian Energy Minister Aleksandre
    Khetaguri has said. He noted that the scheduled repair work is being
    conducted now in order to avoid any problems in the winter. Khetaguri
    also said that Georgia receives natural gas from different sources and
    there will be no problems in that respect in the winter.

    Has Georgia really been able to do what Europe is yet to achieve,
    i.e. reduce the energy-related threats through the diversification of
    energy imports?

    Officials from the energy system often emphasize that the country has
    effectively stopped importing electricity over the last two years. In
    the winter, the country's power supply consists of the electricity
    generated domestically (at the Inguri and other hydroelectric power
    stations and the Gardabani power station) as well as the electricity
    received from abroad in return for the electricity exported in the
    summer. The Inguri power station is still controlled by the Russian
    military though representatives of the Georgian energy system have
    said that the plant is working in the normal mode and it is impossible
    to restrict the supply of electricity to Georgia for purely technical
    reasons. The Russian-owned Telasi company is responsible for power
    supply in Tbilisi. The Russians also own the 9th and the 10th blocks
    of the Gardabani power station that are an important element of the
    country's power supply in the winter. The Georgian government has said
    that it is not going to create any problems for the Russian companies
    that operate in the country (naturally, no one can say anything in
    public as to whether there could be acts of sabotage or whether those
    blocks can break down at a critical time the way it used to happen
    before the Rose Revolution).

    Telasi itself has told 24 Saati that the company continues to operate
    as usual. Valeri Pantsulaia, head of the Telasi public relations
    service, said that contracts have been signed with the suppliers and
    repair work has been completed in Tbilisi's internal network. There
    are some reserves too and Telasi can cope with a 10-15-per cent
    increase in power consumption.

    Georgia importing natural gas from different sources

    As for Georgia's gas supply, the country does indeed import gas from
    different sources today. Specifically, the State Oil Company of
    Azerbaijan Republic [SOCAR] resumed supplying the Georgian Gas and Oil
    Corporation with gas on the basis of a new contract on 10 May
    2008. Under this contract, Georgia is to receive 1.5m cu.m. of gas a
    day in 2008. The country received a daily amount of 1.3m cu.m. from
    the same source in 2007. Neither party has disclosed the price of
    gas. Moreover, the state corporation receives natural gas as part of
    the Sah Daniz project, as well as 10 per cent of the gas supplied to
    Armenia by Gazprom. According to the official information, the
    Georgian state corporation does not buy natural gas from Gazprom
    today. However, there are private companies that have direct contracts
    with Gazprom. As 24 Saati was told, Tbilkaztransgaz which is
    responsible for the capital's gas supply is one of these companies.
    Interestingly, 12 of Georgia's provinces receive gas from Russia's
    Itera, while the rest of the country receives it from Azerbaijan's
    SOCAR. Despite the diversification of import, analysts have said that,
    without Gazprom's natural gas, it will be impossible to supply the
    entire country in the winter. They have also said that an increase in
    the price of natural gas is inevitable regardless of whether the
    negotiations are conducted by the state or the private companies.

    There is another threat: Gazprom has offered to buy all of the gas
    extracted in Azerbaijan. Although Azerbaijan's Trend news agency has
    reported that the offer was followed by a similar proposal from
    Turkey, the fact is that the question is still being discussed. The
    events that have unfolded in recent days indicate that Russia is
    planning to use the question of Nagornyy Karabakh to exert pressure on
    Azerbaijan.

    ...

    [translated from Georgian]
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