With the launching of the South Caucasus Gas Pipeline (SCP) less than five months away, Georgia is now striving to gain the right to purchase more gas from this pipe at a reduced price than is envisaged by the current contract.
Experts from Azerbaijan, Georgia and Turkey gathered in Tbilisi on June 20 to negotiate Georgia’s request on a sideline of the Eurasian Energy Security conference.
Initially it was agreed that after the construction of the SCP – also known as the Baku-Tbilisi-Erzrum, or Shah-Deniz, gas pipeline – Georgia as a transit country will receive 5% of the natural gas transported from Azerbaijan to Turkey. Georgia will also purchase an additional half billion cubic meters of gas per year at a reduced price – USD 55 per 1000 cubic meters (with annual 1,5% price escalation) for the next 20 years. The SCP has an initial capacity to ship 8 billion cubic meters of gas. After 2012, capacity is expected to increase up to 20 billion cubic meters.
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