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US against sale of Georgian gas pipelines to Gazprom

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  • US against sale of Georgian gas pipelines to Gazprom

    Agency WPS
    The Russian Oil and Gas Report (Russia)
    October 22, 2004, Friday

    THE US IS AGAINST SALE OF GEORGIAN GAS PIPELINES TO GAZPROM


    The US is against the sale of the trunk gas pipeline of Georgia to
    Gazprom, which has been demonstrating its interest in privatization
    in the country, says energy envoy of the US Department of State to
    the Caspian region Stephen Mann.

    In 2003, Gazprom signed a framework agreement with the former
    Georgian government headed by President Eduard Shevardnadze on close
    cooperation and gas supplies to the country. Soon after that Gazprom
    managed to oust the international group of companies ITERA, that was
    at that time the monopoly gas supplier to Georgia, from the Georgian
    market. Several times Gazprom offered the government of Georgia to
    sell the trunk gas pipeline through which gas was delivered from
    Russia to Georgia and Armenia. Georgian economic experts say that
    Gazprom is prepared to pay a few hundreds of millions of dollars to
    acquire control over the object strategic for Georgia.

    In a few years Georgia plans to receive gas via the pipeline from
    Azerbaijan to the Turkish Erzurum and to become less dependent on the
    gas supplies from Russia, political relations with which have grown
    worse lately. Mann states, "If the trunk gas pipelines are sold to
    Gazprom the possibility of gas purchase from Azerbaijan will be lost.
    Naturally, Gazprom will try to sell its gas." Mann believes that if
    Georgia sells the gas pipelines to Gazprom it will lose energy
    security. Mann concludes, "I call on everyone to look at the
    agreement between Gazprom and Georgia. For Georgia it was
    unfavorable."

    Source: Vremya Novostey, October 21, 2004

    From: Emil Lazarian | Ararat NewsPress
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