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Georgia agrees new arrangement with Gazprom for transit of gas to Armenia

12 January 2017

The Government of Georgia has agreed to sign a new two-year agreement with Gazprom. The decision was made at a meeting of the Cabinet of Ministers in Tbilisi on Wednesday, reports agenda.ge. The new agreement entails monetary compensation for the transport of Russian gas to Armenia through Georgia instead of the former arrangements, which gave Georgia 10 percent of all natural gas transported through the country. That agreement expired on 31 December.

"After several rounds of negotiations, we have reached a deal with Gazprom and accepted an optimal proposal from them. Under the new agreement, Georgia's dependence on Russian energy resources will not increase. Only the payment conditions have been changed. And it will be one of the highest transit fees among European countries", said Georgian Energy Minister Kakha Kaladze.

The Minister further explained that the agreement of 2016 will remain valid for 2017, after which the new payment system will come into effect.

In addition Kaladze said Georgia may receive additional gas supplies from Russia in order to fill the deficit during the winter months when gas consumption is higher.

We will be able to receive additional gas supply for a reduced price - for $185 instead of $215 [per 1,000 m3] ," said Kaladze.

In 2013, Gazprom and Gazprom Armenia signed the contract for up to 2.5 billion cubic meters of Russian gas to be supplied annually to Armenia in 2014-2018. On April 7, 2016, an addendum to the contract was signed. Gas is delivered to the Armenian border by Gazprom Export. In 2015, Gazprom supplied Armenia with 1.9 billion cubic meters of gas.

source: commonspace.eu with agenda.ge

photo: Georgia's Deputy prime Minister and Minister for Energy, Kakha Kaladze.

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