Gas market news

11 January 2017

A meeting between Gazprom Export and Georgian partners took place

A meeting between Director General of Gazprom Export LLC Elena Burmistrova and the Deputy Prime Minister and Minister of Energy of Georgia Kakha Kaladze took place on January 10, 2017, in Minsk. The terms of gas transit to Armenia through the territory of Georgia, as well as gas supplies to Georgia were discussed at the meeting.

“Gazprom Export made to the Georgian side a package proposal based on favourable and mutually beneficial conditions, which will provide the Georgian side with a guaranteed income flow from gas transit services and increase the security of gas supply of Georgia”, — Director General of Gazprom Export LLC Elena Burmistrova said.
 

Background

Gas transit from Russia to Armenia is carried out via the territory of Georgia. Earlier the services of transiting gas via the territory of Georgia were paid in kind, by physicalsupplies equivalent to 10% of natural gas transported through Georgia to Georgian consumers
In the global gas trade the practice of paying for transit with commodity has not been used for many years already. The Russian side offered its Georgian partners to shift to cash transactions based on rates which are used in the EU countries.
 

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