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Georgia to buy Russian gas for first weeks of 2007 - premier

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  • Georgia to buy Russian gas for first weeks of 2007 - premier

    Georgia to buy Russian gas for first weeks of 2007 - premier

    ITAR-TASS, Russia
    Dec 22 2006

    TBILISI, December 22 (Itar-Tass) -- Georgia will have to buy Russian
    gas at $235 per 1,000 cubic meters in the first weeks of 2007 because
    of technical problems at Azerbaijan's Shah Deniz field, Prime
    Minister Zurab Nogaideli said on Friday.

    "Technical problems of a well delayed by several weeks the deliveries
    through the Baku-Tbilisi-Erzurum pipeline, which were planned for
    December 22," he said.

    "However, Azerbaijani gas is Georgia's strategic choice," Nogaideli
    said. "As soon as the technical problems are resolved, we will start
    receiving gas mostly from Azerbaijan."

    "Russian gas purchases at a price suggested by Gazprom is a reluctant
    but temporary measure," he added.

    Gazprom has signed three contracts on the delivery of 1.1 billion
    cubic meters of gas to Georgia in 2007 at a price of $235 per 1,000
    cubic meters, company deputy CEO Alexander Medvedev said.

    He said gas payments will be monetary as Georgia is not prepared to
    pay with assets so far.

    The contracts were signed with three leading gas consumers in
    Georgia: the Klari Energy Corporation that generates electricity, the
    Kastrasgaz Tbilisi Company that supplies gas to the capital city, and
    the Georgian International Energy Corporation that makes cement.

    No gas contracts have been signed with Georgian chemical plants, and
    there are no agreements to transit gas to Armenia either. This is our
    concern, Medvedev said.
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