Southern gas corridor16 Nov 2019 20:23
https://www.oxfordenergy.org/wpcms/wp-content/uploads/2018/07/Lets-not-exaggerate-Southern-Gas-Corridor-prospects-to-2030-NG-135.pdf
excerpts..
Georgia imported 2.2 bcm from Azerbaijan in 2015, and about 2 bcm in 2016, enabling it to suspend deliveries from Russia, apart from the volumes used to pay for transit. In January 2017, the contract under which Russian gas was delivered expired; Georgia had to renegotiate it under circumstances whereby Azerbaijan’s supply was potentially over-committed. Moreover, Gazprom proposed to end the gas-for-transit arrangement and to monetise both transit fees and the purchase of gas imported by Georgia. The Georgian government eventually reported that it had agreed with Gazprom to pay for imports partly with transit services and partly with cash in 2017, and to move entirely to cash transactions in 2018. In line with its policy of minimising imports from Russia, Georgia has set its 2018 gas balance at 2.69 bcm, of which it plans to import 2.68 bcm from Azerbaijan.
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Projections of the level of consumption of Azerbaijani gas in Azerbaijan and Georgia during the 2020s should be put in a broader context. It is in Gazprom’s commercial interest to sell gas volumes, at a profit, to customers in Azerbaijan and Georgia who are served by existing pipelines. But it is not in Gazprom’s interest to sell at a price lower than the European netback, otherwise it could be freeing up volumes of Azerbaijani gas for export to Europe, where it would compete with Gazprom’s gas. Gazprom’s sales price to Georgia, as reported in 2017, was $185/mcm. Other wholesale gas prices in the region are not generally reported; however, a price marker is provided by Greenfields Petroleum, a US-based producer that operates a small joint venture with Socar, and which reported its well-head prices as $139.83/mcm in 2016 and $94.99/mcm in 2018. 26 It may be assumed, therefore, that Azerbaijan’s gas will always go first to satisfy its own and Georgia’s domestic demand, before volumes are exported further westwards
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