Georgian PM to visit Turkey, Azerbaijan

The talks will take place on a sideline of the World Economic Forum on November 23-24.

The visit is important in a light of Georgia’s efforts to purchase more cheap Shah-Deniz gas, than it is currently envisaged by the South Caucasus Gas Pipeline (SCP) contract. The SCP will transport gas from Azerbaijani's Shah-Deniz field to Turkey via Georgia starting from December, 2006.

PM Zurab Nogaideli, accompanied by Energy Minister Nika Gilauri, is expected to travel to Baku on November 30 to discuss the issue with the Azeri authorities.

Russian energy giant Gazprom said it will increase gas price from current USD 110 to USD 230 per 1000 cubic meters for Georgia starting from January, 2007.

Georgia is expected to receive 200 million cubic meters of gas as a transit fee, plus 50 million cubic meters in a reduced price – USD 55 per 1000 cubic meters from SCP next year. Georgia wants to purchase more than 50 million cubic meters of cheap gas from the SCP.

But the Turkish and Azeri media sources speculated recently that Azerbaijan will not be able to supply Georgia with additional gas as Baku itself may face shortage of energy in 2007.

Azerbaijani news agency Trend reported quoting Rovnag Abdulayev, President of State Oil Company of Azerbaijan (SOCAR), that Russia plans to reduce gas supply to Azerbaijan to 1,5 billion.

Georgian Energy Minister Nika Gilauri told reporters on November 22 that Tbilisi is in intensive talks with Azerbaijan, Turkey and Iran over gas supplies and details will be unveiled only after negotiations are over. Civil Georgia