Tbilisi: Gazprom Eyes Georgian Pipelines

Civil Georgia, Georgia
Jan 21 2005

Gazprom Eyes Georgian Pipelines

Visiting representative of the Russian energy giant Gazprom told
reporters in Tbilisi on January 21 that the company is interested in
privatizing Georgian gas pipeline system.

However, Georgian officials say that no final decision over
privatizing gas pipelines has been made so far.

`We are very cautious over this issue. Currently there are no plans
over selling gas pipelines,’ Georgian Prime Minister Zurab Zhvania
told reporters on January 21.

Georgian gas pipeline system includes pipes, which distributes gas in
the Georgian regions and pipelines, which are used for transit of gas
from Russia into Armenia. Observers say that state-run Gazprom is
mainly interested with taking over transit gas pipelines.

Georgian officials say Gazprom is also interested in purchasing
several power plants in Georgia.

On July 1, 2003 Georgian government and Gazprom signed a memorandum
on strategic cooperation for 25 years.

The agreement, which is still in force, envisages supply of natural
gas to the Georgian customers, rehabilitation of the gas pipelines,
including two trunk-line gas pipelines, one of which will be used for
transportation of gas to Armenia and the other – to Turkey, via
Adjara Autonomous Republic.