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Gazprom Eyes Georgian Pipelines

Visiting representative of the Russian energy giant Gazprom told reporters in Tbilisi on January 21 that the company is interested in privatizing Georgian gas pipeline system.


However, Georgian officials say that no final decision over privatizing gas pipelines has been made so far.


?We are very cautious over this issue. Currently there are no plans over selling gas pipelines,? Georgian Prime Minister Zurab Zhvania told reporters on January 21.


Georgian gas pipeline system includes pipes, which distributes gas in the Georgian regions and pipelines, which are used for transit of gas from Russia into Armenia. Observers say that state-run Gazprom is mainly interested with taking over transit gas pipelines.

Georgian officials say Gazprom is also interested in purchasing several power plants in Georgia.

On July 1, 2003 Georgian government and Gazprom signed a memorandum on strategic cooperation for 25 years.


The agreement, which is still in force, envisages supply of natural gas to the Georgian customers, rehabilitation of the gas pipelines, including two trunk-line gas pipelines, one of which will be used for transportation of gas to Armenia and the other – to Turkey, via Adjara Autonomous Republic.

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