| A guest from Gazprom is expected in Georgia Today, Deputy Chairman of the Board of Gazprom Alexander Ryazanov may come to Tbilisi for negotiations with the Minister of Fuel and Energy of Georgia Nikolai Gilauri. The parties will have to discuss the issues of concluding a new contract for the supply of Russian gas at market prices and creating a joint venture, Rosgruzgazprom. An agreement to create such a joint venture on a parity basis for the operation and development of Georgia’s gas transportation system was reached at the end of November in Moscow by Georgian Prime Minister Zurab Nogaideli and Gazprom Chairman of the Board Alexei Miller.
Mr. Gilauri believes that the joint venture will oversee the condition of the main gas pipeline passing through the country. The gas pipeline itself, despite the fact that Gazprom was previously ready to purchase it, will remain the property of the country's government. In addition, Tbilisi expects that the joint venture will develop gas infrastructure in the western regions of Georgia, for example in Batumi, Poti, and Zugdidi.
During Alexander Ryazanov's visit, negotiations on gas prices will continue - starting from the new year, the price of Russian gas supplies to Georgia is expected to rise from $62.5 to $110 per thousand cubic meters. The other day, Georgian President Mikheil Saakashvili said that this decision of Gazprom was “purely political.” According to him, “economic calculations have not even been made regarding this price.” At the same time, he admitted that “increasing gas prices will hit the Georgian economy, but will not be able to extinguish Georgia’s democratic spirit.” By “democratic mood” we should probably understand the excitement of the local population, who are dissatisfied with the fact that the “revolutionary authorities” have not reached an agreement with Russia. But Nikolai Gilauri said that even if the price increases to $110 per thousand cubic meters, the gas tariff for the population of Georgia this winter will not increase. According to him, there are certain reserves in the current tariff - now citizens pay a tariff of 26.55 tetri per cubic meter (about $150 per thousand cubic meters).
However, according to the Georgian Ministry of Fuel and Energy, large gas consumers are such as Mtkvari-Energy LLC, owned by RAO UES of Russia, which owns nine out of ten power units of TbilGRES, Itera-Georgia, which owns controlling stakes in 12 gas distribution companies in the country , Energy Invest, which bought Azot JSC and is building a gas turbine in Gardabani, must separately negotiate with Gazprom on the price of gas for the next year.
Tbilisi was looking for an alternative to Russian gas in November. An agreement was announced with Kazakhstan for supplies from 2006 to 2 billion cubic meters per year for ten years. But this gas will also be supplied at a price determined by Gazprom, since, according to mutual agreements between Moscow and Astana, Kazakh gas can be exported only through the joint venture Kazrosgaz (Gazprom and Kazmunaigas each own 50%). For real diversification of supplies, it is necessary to wait until the Baku-Tbilisi-Erzurum gas pipeline, which is lobbied by the United States, goes into operation at the end of 2006 - beginning of 2007, through which it is planned to transport 15-20 billion cubic meters of gas per year. For transit alone, Georgia will receive 300 million cubic meters until 2015 and will be able to purchase another 500 million at preferential (yet, however, unannounced) prices. Mikhail VIGNANSKY, Tbilisi, Alexey GRIVACHS |
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