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    Georgia Hopes for 1bn m³/yr SD-2 Transit Fee

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Summary

Georgia hopes to receive 1bn m³/yr as a fee for transiting Azerbaijani Shah Deniz gas

by: Dalga Khatinoglu

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Georgia Hopes for 1bn m³/yr SD-2 Transit Fee

Georgia hopes to receive 1bn m³/yr as a fee for transiting Azerbaijani Shah Deniz gas across its territory through the Southern Gas Corridor (SGC), Georgia's premier Georgii Kvirikashvili said.

According to the Azerbaijan-Georgia intergovernmental agreement on Azerbaijani gas transportation, Georgia receives 5% of the gas as a transit fee for transporting 1000 m3 of gas via its territory.

Georgia received about 270mn m³/yr from transiting 5.7bn m³/yr of Shah Deniz-1 gas to Turkey, but it is expected that exporting 16bn m3/yr of Shah Deniz stage 2 gas to Turkey and EU will start in 2020.

If Georgia receives 5% of transited gas, that means about 1.05bn m3/yr from transiting 22bn m3/yr of Shah Deniz gas from both stages of field development.

 

Azerbaijan desk