Liana Jervaldze 1

AZERBAIJAN/GEORGIA –
UPSTREAM ,
DOWNSYTREAM/TRANSIT
COUNTRY COOPERATION
18TH CASPIAN INTERNATIONAL OIL & GAS CONFERENCE
8‐9 JUNE 2011
HYATT REGENCY HOTEL, BAKU, AZERBAIJAN

Liana Jervalidze, Research Fellow, The International

6/14/2011 School of Caucasus Studies, Ilia State University
 Content
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… Georgia’s Energy Market –oil and gas import

dependent
Strategic Cooperation in
… Natural Gas sector

… Oil Products Sector

… Transit Issues

Liana Jervaldze
6/14/2011
 Georgia’s Energy Market- Small,
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Import Dependent on Oil and Gas
Georgia’s domestic market: liberal, open, liberal import
export and transit operations; annual consumption :

… 800 000 tons of oil products - imported

… 1,4 bcm natural gas in 2011 –imported

… 8 billion kWh of electricity produced –self sufficient in

green energy, small exports to neighbor countries,
potentially to EU

Liana Jervaldze 6/14/2011

 SOCAR in Georgia –Strategic Supplier of
Natural Gas, with Access to Downstream,
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SOCAR the main supplier of gas to Georgia since 2007

long term (ten year) gas supply agreement;
SOCAR Access to downstream – SOCAR Georgia Gas,
Ltd (SGG) was established in June 2007, in 2008 it
acquired 30 distribution companies in the regions of
Georgia Kakheti, Mtskheta-Mtianeti, Inner and Lower
Kartli, Ajara, Guria, Imereti, Samegrelo. SOCAR Gas
has 150 000 consumers in the regions.
Total investments of SOCAR Georgia Gas, Ltd's
amounted to more than 40 million USD dollars in 2010.
Employs about 1000 people, staff and specialists;

Liana Jervaldze 6/14/2011

 SOCAR in Georgia –Strategic Supplier
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of Oil Products
SOCAR Petroleum Georgia was established by SOCAR
Energy Georgia in September 2006, currently it holds
72% of petrol and 61% of diesel market

SOCAR Petroleum opened first filling station on 25 April

2008 and currently operates 86 stations, storage
capacity -30 000 tons

SOCAR supplies 30 000 tons of oil products per month

holds more than 60% of Georgia’s oil products market

Liana Jervaldze 6/14/2011

 SOCAR – The Largest Taxpayer in
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2010
… In 2010 SOCAR Energy Georgia contributed 150
million GEL ($=1,66 GEL) to the state budget

… The largest investment -50 million GEL

… Employs several thousand people, about 1000 in Socar

Petroleum Georgia, and about 1000 in Socar Energy
Georgia

Liana Jervaldze 6/14/2011

 Strategic Cooperation on Transit Issues
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– Existing Projects
… Baku-Tbilisi-Ceyhan

… South Caucasus Gas Pipeline to Turkey

… Railway transportation and Khulevi terminal on the

Black Sea

Liana Jervaldze 6/14/2011

 Georgia Transit for Azerbaijani Thermal
Electricity to EU Market in Winter (new 500kW
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line)

Liana Jervaldze 6/14/2011

 Georgian Green Electricity delivered
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to Serbia- June 3, 2011

Liana Jervaldze 6/14/2011

 Transit of Natural Gas through South
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Corridor
Development of Shakh Deniz -2 by 2017
Routes under consideration with more or less progress:
… Turkish infrastructure, TGI, ITGI, Adria

… NABUCCO

… AGRI

Liana Jervaldze 6/14/2011

 Oil and Gas Transit through South
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Corridor

Liana Jervaldze 6/14/2011

 AGRI – Azerbaijan, Georgia, Romania
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Interconnector
… Joint company and board set up (SOCAR, GOGC,
Romgas),
… Construction sites identified
… Capacities and costs to be identified
… Moving forward to Prefeasibility (several
companies have shown their interest and presented
their vision at the ministerial in Bucharest a few
weeks ago)

Liana Jervaldze 6/14/2011

 Georgia’s Position on Transit
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… Offer clear, transparent and stable transit

conditions to its partners

… Facilitate Producer –Consumer Dialogue

Liana Jervaldze 6/14/2011

 Thank You

14 Liana Jervaldze 6/14/2011