13.Jan .2021 13:00

Georgia to purchase 200 mln cubic m of gas from Russia this year

Georgia to purchase 200 mln cubic m of gas from Russia this year
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According to the document on Natural Gas Balance approved by the Ministry of Economy, Georgia will purchase 200 million cubic meters of gas from Russia in 2021. This volume amounts to 7.32% of Georgia's total gas supply.

The government will buy the gas from Russian state energy corporation Gazprom Export.

The Ministry of Economy predicts, that gas consumption will be increase by 186 million cubic meters and reach 2.73 billion cubic meters in 2021.

Gas supply growth totally accounts for Azerbaijan side and Georgia will receive 2.52 billion cubic meters of natural gas this year. Accordingly, the share of Azerbaijan gas will be 92.3% of total consumption.

In turn, Georgia takes gas from two sources of Azerbaijani, namely:

1) Gas from Shah Deniz Consortium - 1.014 billion cubic meters, increase of 125 million cubic meters;
2) Gas from SOCAR - 1.504 billion cubic meters, increase of 80 million cubic meters.

As for the local gas extraction, the Ministry of Economy predicts 11 million cubic meters. Accordingly, Georgian gas will meet only 0.4% of total consumption.

Georgia receives natural gas from Azerbaijan on the basis of agreements signed with SOCAR and the Shah Deniz Consortium. As a result of the agreement reached in December 2020, SOCAR took the decision on reduction of "social gas" cost. As a result, Georgia receives gas of 200 million cubic meters at a discounted price. The "Social gas" is intended for the population and thermal power plants.

According to the Ministry of Economy, the volume of gas consumed by the population, as well as thermal power plants and the commercial sector will increase this year.

The gas consumption forecast for 2021 is as follows:

1) Population (social gas) - 1.129 billion cubic meters of gas, increase of 41 million cubic meters;
2) Thermal power plants (social gas) - 665 million cubic meters, increase of 79 million cubic meters;
3) Commercial sector - 900 million cubic meters, growth of 60 million cubic meters.