26.Mar .2021 14:30

Assets of GOGC to be split - Gas Transmission Network leaves the Corporation

Assets of GOGC to be split - Gas Transmission Network leaves the Corporation
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The assets of one of Georgia's largest state-owned companies, the Oil and Gas Corporation, have to be split due to ongoing reforms in the energy sector. The gas transmission network will leave the corporation and it will become part of another organization.

Davit Narmania, the Chairman of the GNERC, presented the draft resolution on the separation of the gas transmission operator at today's government session.

According to GNERC, after the adoption of the new resolution, Georgian legislation will be in line with the requirements of the European Energy Union.

Giorgi Pangani, a member of the GNERC told Business Course, that along with the separation of Oil and Gas Corporation, natural gas distribution companies should be separated this year as well.

"The Oil and Gas Corporation will no longer own the gas transmission network. It will transfer this network to another company. This is the first phase of reforms in the natural gas sector. By the end of 2021, distribution network operators will be also separated from supply activities. Accordingly, we will get a full transposition of energy legislation and we will already be in line with the basic regulations of the European Union," said GNERC member Giorgi Pangani.

In 2019, the total revenue of the Oil and Gas Corporation was 880 million GEL. The removal of the natural gas transmission network from the corporation is likely to reduce the company’s revenue.

Late in 2019, the corporation’s assets were 1.88 billion GEL.