Georgia sold 600k meters of gas pipelines to SOCAR

SOCAR Georgia Gas, a subsidiary of the State Oil Company of Azerbaijan (SOCAR), has acquired gas pipelines in a number of Georgian regions with a total length of 594 thousand running meters. 

According to the order published on the official website of the country’s government, the gas pipelines were transferred to the company for 21.3 million lari ($ 9.5 million at the current rate) in direct sale. In particular, SOCAR Georgia Gas has received gas transmission networks in the territories of Kaspi, Gardabani, Zestafoni, Zugdidi, Ozurgeti, Lagodekhi, Ahmet and Onsky municipalities.

According to the terms of the transaction, the cost of the real estate acquired by the company in the amount of 21.3 million lari should be fully paid within 48 months, including 8.5 million lari – within 36 months.

It was previously reported, that on December 26, 2008, the government of Georgia and SOCAR signed an agreement according to which 23 regional gas distribution companies and a number of gas farms and networks were transferred to the Azerbaijani oil and gas giant under the terms of investment in the country’s gas infrastructure.

In October 2012, SOCAR became the owner of the company Itera-Georgia, a 100% subsidiary of ITERA International Energy LLC, becoming almost the only distributor of natural gas in the regions of Georgia.

At present, SOCAR is the main supplier to Georgia both natural gas, oil, and oil products. Subsidiaries of SOCAR are busy expanding and modernizing gas distribution systems in the country, developing a network of petrol stations under the SOCAR brand, and owning an oil terminal in the Georgian Black Sea port of Kulevi, through which Caspian oil and petroleum products are transshipped to world markets.

Over the years, Georgia has invested more than $ 1.5 billion in various projects in the country. SOCAR Georgia Gas has laid gas pipelines in the country with a length of about 6,000 km, which allowed gasifying more than 210,000 subscribers.