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How realistic is import of Iranian natural gas?

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  • How realistic is import of Iranian natural gas?

    Messenger.ge, Georgia
    July 12 2004

    How realistic is import of Iranian natural gas?
    By M. Alkhazashvili

    As soon as four months from now Georgia will be able to import
    natural gas from Iran if needs be, claims Minister of Energy Nika
    Gilauri after the recent visit of President Saakashvili to the
    Islamic Republic of Iran.

    A serious problem for Georgia's national security is the fact that
    Georgia depends very much on Russia's energy carriers. Russia has
    become the sole supplier of natural gas to Georgia. This fact,
    analysts say, gives Russia the opportunity to fix prices or even put
    political pressure on Georgia.

    One alternative to Russian natural gas is the recently emerging Azeri
    supply. The Baku-Tbilisi-Erzerum natural gas pipeline requires
    another 3-4 years to be completed. In the current situation, in case
    the Russian gas supply to Georgia is cut off, the country will be
    very vulnerable.

    As Georgia's Minister for Energy mentioned, the Tbilisi
    administration believes it absolutely unacceptable to rely on Russian
    natural gas and thus is seriously searching for an alternative means
    of supply. It looks like after the visit of the president in Iran the
    real steps were taken toward this direction.

    For Iran, there is no obstacle to delivering natural gas either to
    the Armenian or Azeri border. To transit gas through Armenia, a new
    pipeline should be constructed which would cost approximately USD 180
    million. It is more realistic for Georgia to transit Iranian gas
    through Azerbaijan since in this case they only need to rehabilitate
    an already existing pipeline system from the Iran-Azeri border to
    Baku and then from Baku to Georgia.

    Minister Gilauri most probably meant this route when he mentioned
    that Georgia could receive Iranian natural gas already thorough the
    existed pipeline system, which needed only four months and USD 1.8
    million.

    "In spite of the fact that Iranian gas costs twice the Russian price,
    an alternative source for natural gas is found," Gilauri told
    Rezonansi. Despite the fact that importing Iranian natural gas is
    expensive, officials still believe it is very important to have an
    alternative supply for when ever needs be.
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