Georgia’s State Audit Office has warned that the state-owned Georgian Oil and Gas Corporation (GOGC) could face liquidity problems and may require additional funding from the central budget. According to the audit report on state-owned enterprises, the company faces ongoing capital needs largely because it subsidizes natural gas tariffs for households and supplies gas to certain commercial customers at government-determined prices.
The corporation’s household gas tariff subsidies totaled GEL 135 million in 2025, GEL 93 million in 2024 and GEL 302 million in 2023. Between 2020 and 2025, the foregone revenue from these subsidies reached approximately GEL 1.17 billion, putting sustained pressure on the company’s finances.
GOGC experienced liquidity problems in 2022 and received a GEL 230 million loan from the Finance Ministry in December of that year. The loan remains partially unpaid, with GEL 110 million still owed to the state budget. Repayment has been extended until the end of 2027.
The Audit Office said the company’s corporate plans identify several potential liquidity risks, including gas subsidies, infrastructure and rehabilitation projects, and possible write-offs of third-party liabilities. However, the Finance Ministry’s documents do not establish whether the government was formally presented with proposals to address these risks, and the issue was not reflected in the 2025 consolidated report on state-owned enterprises. The corporation was classified as medium-risk in 2022–2024, according to the audit.
