Georgian Government begins gas talks with SOCAR

The Georgian Government will begin gas talks with Azerbaijani oil company SOCAR in order to avoid an increase in tariffs for natural gas in the country. 

Georgia’s Prime Minister Irakli Garibashvili has already instructed the Vice Premiers to start the negotiations with SOCAR.

From March 1, the price of natural gas will get more expensive for legal bodies in Tbilisi. From then natural gas will cost 0.9 GEL (about $ 0.45 USD) per cubic metre, said a representative from KazTransGas-Tbilisi.

The price increase was associated with the significant change in exchange rate in the value of the GEL to the USD. 

The increase of tariff of natural gas for individuals was not expected.

"I think we must find ways to avoid an increase in gas prices, in any case, at least at this stage. We had communication with representatives of SOCAR. They are absolutely willing to negotiate on this subject, so I want to once again call on the two deputy prime ministers, together with the Economic Council, which will be involved in this process on my behalf to resolve the issue in the shortest time," Garibashvili said at a Governmental meeting.

Currently the tariff for natural gas in Tbilisi is 0.4562 GEL (about $0.23 USD) per 1 cubic meter. In the regions this price ranges from 0.4 to 0.5 GEL (about $0.2 - $0.25 USD) per 1 cubic meter.

Georgia's Energy Minister and Vice Premier Kakha Kaladze said KazTransGas-Tbilisi and other companies who supplied the capital city with natural gas were facing serious problems due to the depreciation of the national currency.

"Accordingly, they announced that it was necessary to increase the tariffs for natural gas for legal bodies with the exception of  bakeries. Although we have been discussing all the possibilities with SOCAR to avoid a price increase,” Kaladze added.

Azerbaijan provides more than 80 percent of the gas consumed by Georgia.

Meanwhile, Georgia’s Prime Minister addressed the state bodies to take action as soon as possible to not create artificial barriers for businesses.

"I am surprised by the fact that 2014 was the best year for the business community of the past five years. Business is absolutely free and everyone admits it. I would like to ask every ministry, municipalities, mayors and all decision-makers to speed up all the procedures and make decisions on time,” Garibashvili said.