Kazakhstan to Sell Georgian Gas Asset

Kazakhstan, one of the main foreign investors in Georgia, may sell its gas distribution business in Georgia, Reuters reported on October 7.

Kairgeldy Kabyldin, head of Kazakh state oil and gas company KazMunaiGas, said his company may look to sell KazTransGaz-Tbilisi, a gas distributor company covering Tbilisi. He cited financial reasons.

“It may be sold, just like in any other business,” he said.

Kabyldin, however, ruled out selling another Kazakh asset in Georgia – the oil terminal in the Black Sea port of Batumi, describing it as strategic.

“This corridor will be used for oil exports that will not be pumped through CPC [Caspian Pipeline Consortium] and for oil volumes produced at the Kashagan oilfield," he said, referring to Kazakhstan’s huge Caspian deposits.

Last month the Kazakh state oil and gas company said it had dropped plans to build a USD 1 billion oil refinery in Georgia’s port town of Batumi. Astana has also dropped plans to build a grain terminal in Poti, citing “the current situation in Georgia.”

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