The Georgian government plans to provide an additional GEL 100 million loan to the state-owned Georgian Oil and Gas Corporation (GOGC), according to the revised 2027 state budget draft. The funds are expected to be disbursed by the end of 2026 and repaid in 2027.
The budget explanatory note states that the projected return of loans to the state budget has been increased by GEL 100 million, reflecting temporary financial assistance planned for GOGC this year. The State Audit Office had previously warned that the corporation could face liquidity problems due to the costs of subsidising natural gas tariffs for households.
The government first provided GOGC with a GEL 230 million loan in December 2022, which was initially expected to be repaid within one year. However, GEL 110 million remains outstanding, with repayment postponed until the end of 2027. According to the company's financial statements, subsidising household gas tariffs cost GOGC GEL 135 million in 2025, compared to GEL 93 million in 2024 and GEL 302 million in 2023.
Over the past five years, the corporation has reportedly forgone approximately GEL 1.17 billion in revenue due to household gas tariff subsidies. The State Audit Office has identified these subsidies, alongside infrastructure projects and government-mandated gas prices for certain commercial consumers, as potential sources of liquidity risks for the corporation.
