Georgia Taps Azerbaijani Gas to Reduce Dependence on Russia

Georgia began receiving natural gas from Azerbaijan's Shah Deniz field in the Caspian Sea on 15 January 2007, according to Energy Minister Nika Guilaouri. The move marks a significant shift in the country's energy strategy away from its historic reliance on Russian supplies.

Under an agreement reached in late December, Georgia will import 250 million cubic meters of Azerbaijani gas annually at 62 dollars per 1,000 cubic meters, plus an additional 1.1 billion cubic meters at 120 dollars per 1,000 cubic meters.

The diversification came after Russian supplier Gazprom more than doubled the price it charges Georgia, triggering a dispute that raised fears of a supply cutoff similar to the crisis Gazprom provoked with Ukraine a year earlier.

Guilaouri noted that Georgia now draws gas from three separate sources: Russia, Azerbaijan, and the Shah Deniz consortium. President Mikheil Saakashvili has said Georgia aims eventually to cover all of its gas needs through Azerbaijani imports.

Historical summary. TurkishPress restated this wire report, first published in January 2007, in its own words.