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RUSSIA PROPOSES GEORGIA TO PURCHASE NATURAL GAS AT PRICE OF $110 PER 1000 CUBIC METRES

By Azerbaijan Today Staff



Georgia does not agree with "Gasprom" proposal for steep prices increases for natural gas deliveries from 60 USD to 110 to 110 USD per 1000 cubic metres. Gija Tavadze, Chairman of the National commission on economics regulation of Georgia said that proposal was voiced at a meeting of the minister of energy of Georgia with the management of "Gasprom," Russian State Company. Tevtadze noted that if purchasing price of natural gas increases up to limit proposed by "Gasprom" then consumption tariff not only on gas but also on electricity would increase. But it doesn't mean that consumption tarrif for gas will increase proportionally growth of purchasing price. For example, if purchasing price on gas increases on 80-90% then consumption tariff on gas and electricity will increase on 20-25% maximum.

In particular, consumption tariff on gas in spite of 27 tetri ($0.15) may make 33 tetri per 1 cubic metre, and electricity may be increased from 12 tetri (0.06) to 14 tetri per 1 kW/h. The reason is that sufficient enough place in the energy balance of the country occupies electrical energy produced at thermal electrical stations (about 2 bln kW/h).

\Note that "Tbilgasi" Tbilisi gas distribution company at present buys gas on the border of Georgia at price of $60 per 1000 cubic metres. Consumption tariff in Tbilisi is $150 per 1000 cubic metres. It is necessary to emphysize that since January 1, 2006 Azerbaijan will import russian gas at price of $61 per 1000 cubic metres, and electricity - $0.15 per kW/h.


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