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GAZPROM

December 23, 2005

Gazprom and Tbilgazi ink gas supply Contract for 2006

On 21 December, in accordance with an earlier accord to switch from 2006 to a new level of gas supply and transit prices, Gazprom and Tbilgazi inked in Moscow a Contract on gas supply to the Republic of Georgia for 2006.

Under the Contract, Tbilgazi will acquire next year from Gazprom up to 920 mln m? of gas priced at US $110 per 1,000 m?.

Reference:

Georgia does not produce gas and mainly imports it from Central Asia. The share of natural gas in Georgia’s energy basket averages 24 per cent.

Gazprom and the Republic of Georgia have sealed a 25-year Agreement on strategic cooperation in the gas industry. The Agreement outlines major joint businesses embracing Gazprom’s natural gas deliveries to Georgia and involvement in gas marketing to end users; operation, restoration and reconstruction of Georgian pipelines; gas supplies to Georgia’s thermal plants for power generation and marketing purposes; development of joint projects aimed at using transit capacities of the Georgian gas transmission system.

As of 1 December 2005, Gazexport has supplied the Republic with 1.23 bcm of gas this year.

 

 

 

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