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The Messenger, Georgia
Oct 26 2006
Iranian energy comes to the rescue again
By M. Alkhazashvili
(Translated by Tiko Giorgadze)
In an interview with Radio Free Europe/Radio Liberty (RFE/RL) at the
Prague Energy Forum Irakli Ghvaladze, deputy minister of
Environmental Protection and Natural Resources claimed, "Our
government is prepared. We have alternative energy sources; we've
installed new power-generating units in our electricity plants. So
we're more or less ready for this winter."
Despite these confident words, the Georgian government is still
scrambling to prepare for a possible energy crisis this winter not
only because it has fresh memories of Russia's actions last winter
against Georgia and the Ukraine, but even colder relations with
Russia this year demands that Georgia line up alternative energy.
Energy Minister Nika Gilauri and Minister of Foreign Affairs Gela
Bezhuashvili just returned from a visit to Iran where they conducted
negotiations about supplying Georgia with electricity and natural
gas. It was agreed that Iran would transfer 50 megawatts of
electricity via Armenia to Gerogia beginning in late November and
expressed hope that the capacity of energy exchange will increase to
300 megawatts soon after that.
An agreement over natural gas has not been reached-the price is still
under negotiation.
Some experts are concerned that cooperation with Iran could create
some tension in Georgia's relations with some of its western
partners. The newspaper Akhali Versia reports economist Gia
Khukhashvili as saying that cooperation with Iran may only be
palatable to the West if Georgia receives natural gas only in cases
of force majeure from Russia.
Other analysts are looking at the issue fiscally. In 2006, the price
of the natural gas imported from Iran was twice as expensive as
Russian natural gas. Iran's natural gas cost USD 230 per 1000 cm
compared to Russia's cost of USD 110, however, Georgia's contract
with Gazprom expires at the end of this year, and it remains to be
seen what price they will name for next year's supplies.
Oct 26 2006
Iranian energy comes to the rescue again
By M. Alkhazashvili
(Translated by Tiko Giorgadze)
In an interview with Radio Free Europe/Radio Liberty (RFE/RL) at the
Prague Energy Forum Irakli Ghvaladze, deputy minister of
Environmental Protection and Natural Resources claimed, "Our
government is prepared. We have alternative energy sources; we've
installed new power-generating units in our electricity plants. So
we're more or less ready for this winter."
Despite these confident words, the Georgian government is still
scrambling to prepare for a possible energy crisis this winter not
only because it has fresh memories of Russia's actions last winter
against Georgia and the Ukraine, but even colder relations with
Russia this year demands that Georgia line up alternative energy.
Energy Minister Nika Gilauri and Minister of Foreign Affairs Gela
Bezhuashvili just returned from a visit to Iran where they conducted
negotiations about supplying Georgia with electricity and natural
gas. It was agreed that Iran would transfer 50 megawatts of
electricity via Armenia to Gerogia beginning in late November and
expressed hope that the capacity of energy exchange will increase to
300 megawatts soon after that.
An agreement over natural gas has not been reached-the price is still
under negotiation.
Some experts are concerned that cooperation with Iran could create
some tension in Georgia's relations with some of its western
partners. The newspaper Akhali Versia reports economist Gia
Khukhashvili as saying that cooperation with Iran may only be
palatable to the West if Georgia receives natural gas only in cases
of force majeure from Russia.
Other analysts are looking at the issue fiscally. In 2006, the price
of the natural gas imported from Iran was twice as expensive as
Russian natural gas. Iran's natural gas cost USD 230 per 1000 cm
compared to Russia's cost of USD 110, however, Georgia's contract
with Gazprom expires at the end of this year, and it remains to be
seen what price they will name for next year's supplies.