Azerbaijani President Ilham Aliyev said that the country has huge natural gas resources, which could satisfy needs of both Azerbaijan and the world market for many years ahead.
“Even after 100 years we will be able to satisfy not only our demands in natural gas, but also demand of our neighbors and Europe,” said Aliyev said at a joint briefing yesterday after the meeting with Georgian President Georgii Margvelashvili first tete-a-tete and then in presence of other officials.
Azerbaijani President said that a wide range of issues, including energy and transport projects, has been discussed at the meetings. “I said at the enlarged meeting that a special commission for cargo transit has been created in Azerbaijan. We want for Georgia and Azerbaijan to pursue a common policy in this direction,” Ilham Aliyev said.
Georgian mass media writes that Ilham Aliyev’s statement in this case is a response to the statement of Georgian Energy Minister Kakha Kaladze that Azerbaijan has no possibility to deliver commercial gas to Georgia and this is why the Georgian Energy Ministry justifies talks with the Russian Gasprom company.
Although Georgian and Azerbaijani officials did not like to demonstrate reality of the gas issues, this does not mean that they do not have any. This was especially noticeable on the eve of Azerbaijani President’s visit.
The electorate is opposed to the Georgian government’s possibility to import Russian gas. They believe that Gasprom’s entering the Georgian market will lead to strengthening of Russia’s pressure on Georgia. “We cannot let it happen. We know very well what is happening to the countries, where Russia comes with its energy policy. The examples are not very far – neighboring Armenia, which has been actually deprived of its own energy and economic facilities, railway and many other things,” they believe.
On the other hand, lately the Georgian authorities have been taking several positive steps towards Armenia – a strategic ally of Russia – by discussing such issues as opening of a railway through Georgia to Russia (via the occupied Georgian land – Abkhazia), power exchange and Russian gas transit. Thus, local political scientists have seen here a “Russian trace” of the next plans of the Georgian authorities.
However, former Advisor of ex-President Saakashvili for Economic Affairs Roman Goziridze claims that in 2016 Georgia will really need additional volumes of gas. He said the country has built a new thermal power station, which needs 300 million cub.m. of gas.
Turan’s research has revealed that on January 17, 2014 Partnership Fund jointly with the daughter company of Georgian Oil & Gas Corporation (GOGC) started construction of 230 MWt power thermal station in Gardaban region on the east of Georgia. The contractor of construction of famous Turkish company Calik Enerji (the cost of the turn-key project is $230 million). The thermal power station will consume only natural gas. The station will be put into operation at the end of 2015 and will supply local market with additional power.
On the other hand, in 2016 the Armenia government plans to increase capacity of the 5th power bloc of the Razdan thermal power station. The electric station will need over 200 million cub.m. of natural gas. Moreover, gas consumption will increase in Armenia as weather will get colder. Thus, Gasprom first had to conduct technical talks with the Georgian Energy Ministry and then discuss more details of possible cooperation at the Georgian market.
One thing has become clear now that in 2016 Gasprom’s gas will most likely be at the Georgian market. Therefore, the reality explains desire of the Georgian government. The gas volume could be 400-500 million cub.m. with the country’s consumption of about 2.4 billion cub.m.
