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Tbilisi: State Minister: No Threat in Privatizing Gas Pipelines

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  • Tbilisi: State Minister: No Threat in Privatizing Gas Pipelines

    Civil Georgia, Georgia
    Feb 22 2005

    State Minister: No Threat in Privatizing Gas Pipelines


    State Minister for Economic Reform Issues Kakha Bendukidze said on
    February 22 that privatization of the gas pipeline system poses no
    threat to Georgia's energy security. He said that along with Russian
    energy giant Gazprom, which is eyeing Georgia's gas pipeline system,
    the consortium that is heading-up the construction of the U.S.-backed
    Baku-Tbilisi-Erzerum gas pipeline can also participate in the
    privatization process.

    `I can not understand why it should pose a threat if those gas
    pipelines, through which Georgia receives gas from Russia, will be
    sold to Russia and if they will take care of [the gas pipeline
    system],' Kakha Bendukidze told reporters.

    In an interview to the Italian newspaper La Stampa published on
    February 20, Georgian President Mikheil Saakashvili said that talks
    are underway with the Russian energy giant Gazprom over privatization
    of Georgia's gas pipeline system. `Negotiations are in progress... I
    prefer not to say more,' Saakashvili answered when asked whether
    Georgia intends to sell its gas pipelines to Russia.

    In 2003, when the Georgian government and Gazprom signed a memorandum
    on strategic cooperation for 25 years, ex-Georgian President
    Shevardnadze's administration came under fierce criticism from the
    opposition for signing this deal, as the agreement was considered a
    threat to the implementation of the U.S.-backed Baku-Tbilisi-Eresrum
    gas pipeline project.

    `I think the fact that Baku-Tbilisi-Erzerum gas pipeline is so
    sensitive to this issues means that the Georgian gas pipeline system
    might have two potential buyers, which is, of course, a positive
    moment,' State Minister Kakha Bendukidze said on February 22.

    The Baku-Tbilisi-Erzerum gas pipeline is a part of much broader,
    BP-led oil and gas development project in the region, which also
    includes the Baku-Tbilisi-Ceyhan (BTC) Main Export Oil Pipeline
    Project.

    The agreement between the state-owned Gazprom and Georgia signed in
    2003, which is still enforced, envisages the supply of natural gas to
    Georgian customers and the rehabilitation of gas pipelines, including
    two trunk-line gas pipelines, one of which will be used for
    transporting gas to Armenia and the other to Turkey, via the Adjara
    Autonomous Republic.

    From: Emil Lazarian | Ararat NewsPress
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