Georgian Energy Thread | ენერგია

[hakz2007]

News, photos and discussions on Georgia's oil, gas and energy

[hakz2007]

Georgia looks to tap hydropower potential

TBILISI (AFP) – Georgia is hoping to tap into its abundance of high mountains and fast-flowing rivers to transform a country that once suffered from repeated blackouts into a regional hydro-electric superpower.

The ex-Soviet republic's government believes the country's untapped hydropower potential is so vast that it can become a key regional electricity provider, doubling its gross domestic product in a decade and creating 10,000 new jobs.

But sceptics are raising doubts about the government's ambitious plans, warning that attracting the six billion dollars (4.4 billion euros) in needed investment will be difficult for a country that last year saw foreign direct investments drop by 51 percent.

"Georgia has already had a great success in overcoming an energy crisis and becoming a net energy exporter," the country's deputy energy minister, Mariam Valishvili, told AFP in an interview.

"In 10 years Georgia will be a regional leader in hydro energy export," she said.

Wracked by economic chaos after gaining its independence with the 1991 collapse of the Soviet Union, Georgia suffered from severe energy shortages in the 1990s and early 2000s.

After coming to power in the 2003 pro-Western Rose Revolution, President Mikheil Saakashvili made energy sector reform a key domestic policy and in recent years the country has enjoyed stable supplies and even begun to export about one billion kilowatt-hours per year.

Valishvili said Georgia is now hoping to build up the capacity to export 10 to 15 times that much electricity, mainly to neighbouring Turkey.

A few key steps have already been taken, in particular the launch last year of construction of a new high-voltage transmission line that will allow Georgia to export 10 times more power to Turkey. The 380-million-dollar (277-million-euro) project is being financed by foreign investment banks and the transmission line is expected to come online in 2012.

Once linked to the Turkish power grid, Georgia will be able to export electricity not only to Turkey, but also to markets in eastern Europe, Syria and Iraq.

The government last year also signed a one-billion-dollar (730-million-euro) deal with a South Korean-Turkish consortium to build three enormous hydropower plants on the Rioni river at Namakhvani in the western Imereti region. Construction is due to begin in 2011 and take six years to complete.

In total, five hydropower plants are already under construction and contracts have been signed to build 16 other plants.

The European Bank for Reconstruction and Development (EBRD), which is helping to finance the new transmission line, said the country's electricity export plans are realistic.

"Georgia has the potential to be a regional champion for hydro energy production," the EBRD's senior banker for power and energy, Laurent Chabrier, told AFP in a statement.

Georgia's "location at the crossroads between Turkey and the Caucasus positions it very well for selling this energy to rapidly expanding markets," he said.

Valishvili said low production costs will be Georgia's main competitive advantage. Generating a kilowatt-hour of electricity in Georgia costs only five to six US cents (three to four euro cents) and the power can be sold to Turkey for 10 US cents (seven euros cents), she said.

Still, analysts said Georgia will need to overcome the scepticism of foreign investors if it hopes for the plan to succeed. Once booming with foreign investment, Georgia saw investors flee the country after its disastrous 2008 war with Russia and amid the global economic downturn.

Many investors remain concerned that Georgia is not a secure place to do business, said Giorgi Gaganidze, an economics professor at Tbilisi State University.

"The main challenge is to convince foreign businessmen that it's safe to invest money in Georgia," he said.

"Investors who are expected to bring in huge sums of money with no prospects of immediate gains need rock-solid security guarantees."

http://georgiandaily.com/index.php?o...0088&Itemid=77

[hakz2007]

SOCAR opens 50th gas station in Georgia

The State Oil Company of Azerbaijan holds on developing global network of filling stations operating under SOCAR brand.

The SOCAR reports that its subsidiary Socar Georgia Petroleum SOCAR Ltd has opened a gas station in Kakheti, Georgia. As a result, the network of gas stations in Georgia has grown up to 50 stations. Until the end of 2010 it is going to expand up to 60 stations.

In addition to Georgia, the SOCAR has gas stations in Azerbaijan and Ukraine.

http://www.news.az/articles/economy/24576

[hakz2007]

Regional cooperation for Turkic-speaking countries vital, Turkish NGO says

It is important for Turkic-speaking countries to have comprehensive regional cooperation mechanisms, according to Dr. Akkan Suver, board chairman of the Marmara Foundation, a Turkish non-governmental organization active in Eurasian issues.

Meetings among the Turkish-speaking states are very important, Suver said, adding that the formation of an energy association would be very valuable for all concerned

Within the forum of Turkic-speaking countries, joint solutions for economic, environment and energy strategies can be produced, Suver told the Hürriyet Daily News & Economic Review in a recent interview.

Suver is the board chairman of The Marmara Group Strategic and Social Research Foundation, or MGV, an important non-governmental organization known for its annual Eurasian Economic Summit and frequently published studies.

Meetings among Turkic-speaking countries such as the most recent ones held in Istanbul in September and late October are meant “to further strengthen the solidarity, common interests and relationships based on the common history, language, identity and culture,” Suver said.

The September meeting was attended by the presidents of Azerbaijan, Kazakhstan, Kyrgyzstan, Turkmenistan and Turkey, with the heads of state primarily focusing on “promoting trade and economic relations based on the principles of equality and mutual interest and in expanding their cooperation in all areas such as industry, agriculture, transportation, communications, hydroelectric power, alternative energy and tourism,” he said.

The leaders also agreed to establish Turkic-speaking Countries Business Council in order to foster economic cooperation and decided to explore the possibility of the establishment of the Turkic-speaking Countries' Development Bank in Istanbul as well as a joint insurance company to support development of non-oil sectors and create new opportunities for private sectors,” Suver said.

Certain countries are missing

Suver is, however, critical of the fact that several countries were missing from the council and said representation from Tajikistan, Uzbekistan and Mongolia should be strengthened for the 20th anniversary of Commonwealth of Independent States next year.

“A shortcoming was the matter of representation from northern Cyprus, Mongolia, Uzbekistan and Tajikistan, which are countries that will greatly benefit from acting in concert with us,” Suver said.

Noting the importance of northern Cyprus’ representation, Suver called on Turkey to assume a historic responsibility in this regard and talk about why its case is justified in the geographical area of Eurasia.

According to Suver, it is also up to Turkey and Azerbaijan to draw Uzbekistan into the fold of the council.

“Here in the first place, the mission falls to Turkish President Abdullah Gül, and then to Azerbaijani President Ilham Aliyev. If Uzbekistan’s president, Islam Karimov, has some concerns and hesitations, they must be promptly removed,” he said.

“We sincerely hope that Uzbekistan will take its place inside this organization for the occasion of the 20th freedom anniversary,” Suver said.

Rising interest in Mongolia

Tajikistan and Mongolia have to be invited to this association as observers or advisory members, Suver said.

In 2006, the foundation head visited in Ulan Bator, the capital of Mongolia, where the president at the time awarded him the country's highest medal, the Medal of Genghis Khan, for the Marmara Group Foundation’s annually organized Eurasian Economic Summits.

“Mongolia has a very positive approach to Turkey. Constructing the road to the Göktürk monuments and the conversion of the Göktürk monuments into an indoor museum by the TİKA [Turkish International Development and Cooperation Agency] has had an enormous impact there,” Suver said.

Suver calls for Black Sea energy association

Suver also emphasized the importance of the issue of energy and called on the Black Sea countries to form an energy association that he strongly believes is needed to prevent the unfavorable and unnecessary structures which the individual agreements between other Black Sea countries could bring about.

“I am concerned about the energy lines that would be created, considering some political interests which may result in the undue and uneven distribution of existing capacity,” Suver said.

As an example, he pointed to how much the Baku-Tbilisi-Ceyhan oil pipeline and the Baku-Tbilisi-Erzurum gas pipeline provide in advantages to the global energy security and sustainable economic development of the region.

There are nearly 20 projects on the boards for transporting oil and natural gas from various points in Central Asia to the West, according to Suver.

Energy associations are necessary not only for energy efficiency but also for the environment, ecology and economic relations of the Black Sea countries, Suver said.

“We have known that coal when burned pollutes the environment for many years. I mean we have been cautious about the use of coal since it produces carbon dioxide when burned. However natural gas which is known as the cleanest fuel produces carbon dioxide as well,” he said.

“I believe that we should put a joint renewable energy project into effect in the Black Sea and reconsider economic requirements in terms of ecological balance and our health.”

The MGV plans to make the topic of an energy association an important part of its next Eurasian Economic Summit in April 2011.

http://www.hurriyetdailynews.com/n.p...ons-2010-11-03

[hakz2007]

SOCAR supplies 300m cubic meters of natural gas to Georgia

In January-November 2010 State Oil Company of Azerbaijan (SOCAR) supplied 300m cubic meters of natural gas to Georgia, according to sources in SOCAR.

In November the gas supplies made up 21.966m cubic meters, which is almost twice as high as the volumes of supplies in September.

For gas supplies to Georgia, the company uses gas from its own fields.

On 13 November 2008 the Georgian government and SOCAR signed a memo, according to which the Azerbaijani side undertakes not to increase the cost of those volumes of gas, which are necessary to Georgia for supplying gas to the population and thermal electric stations in the next five years. In particular, the cost of Azerbaijani gas, supplied to the population equals $167 for 1,000 cubic meters. Instead of supplying gas to SOCAR at the lax price, SOCAR gains the right to control the whole volume of gas imported to Georgia.

On 26 December 2008 SOCAR and the Georgian government signed a contract to transfer 23 regional gas distribution companies and a number of gas economies and networks to SOCAR Georgia Gas. Under the contract, the company is obliged to raise the number of gas subscribers from 55,000 to 150,000,gasify about 30 cities and regions of Georgia, investing $40m in the rehabilitation and development of the gas infrastructure within three years (2009-2011).

http://www.news.az/articles/economy/27985

[hakz2007]

The President of Georgia opened gas-main pipeline in Poti

President of Georgia, Mikheil Saakashvili opened the main gas pipeline in Poti on Monday. As part of the President’s initiative “Gas for every village in Georgia” Poti’s 'gasification' is supposed to be complete in 18 months. Talking of the importance of the initiative both for the development of local infrastructure and attracting international investors, Saakashvili hoped that Poti would become a valuable city in about five years by developing the local industry. Calling the day “historical” Saakashvili welcomed the contribution of Americans (under the framework of the Millennium Challenge Programme) in bringing the pipeline enabling Socar to create a cell around the country.

Explaining the conditions of the long-term contract between Georgia and Azerbaijan, Saakashvili stressed that the price on natural gas would remain the same for our country despite the increase on the world market. “Our economy is not growing the way we want, but we still have growth and everything is comparable, without that everything would turn into a real tragedy,” he said adding that cooperation and friendship with Azerbaijan resulted in the stable provision of energy necessary for our development.

Planning to turn Poti into a city with 100% of employment, the President pointed out the necessity of establishing large enterprises there. Worrying that none of the previous governments have done anything special in that area, Saakashvili hoped that the water and gas pipelines, electricity plus communications (during his governance) have made it possible to create the relevant conditions to attract investors.

Visiting the modern Economic Zone of Registration in Adlia, Samegrelo, Saakashvili passed through all the procedures at the office and appeared very pleased with the service. “We have solved the main problem by defeating corruption using strict methods. But it’s time we moved to a flexible system, with comfortable services and smiling faces. This should become the basis of business development in our country and encourage economic growth. We want to make people feel that doing business in Georgia is easy,” the President addressed the staff.

http://www.messenger.com.ge/issues/2...83_salome.html

[Kokoity]

Azeri-Turkmen gas to fill NABUCCO
By Messenger Staff
Friday, January 28
Commissioner in energy issues, Gunter Ettinger, stated that the NABUCCO project will be functioning in 2-3 years. According to him, Azerbaijan and Turkmenistan submitted precise plans on gas supply. The Azeri President expressed his country’s readiness to supply21 bln cubic meters of natural gas annually for the coming 5-8 years through the NABUCCO pipeline. Meanwhile, Turkmenistan is ready to allot 10 bln cubic meters of natural gas. These amounts are enough to fill the NABUCCO pipeline. Azerbaijan announced its conditions concerning this particular project as well as energy security issues. First, they require a second supplier to the project because Azerbaijan alone cannot fill the pipeline. The next condition is the accessibility of adjusting markets to the European ones. However the Azeri side confirmed its approach towards the NABUCCO project as its number one priority. So, one can conclude that the NABUCCO project is successfully moving forward despite Russia’s attempts to undermine it.

http://www.messenger.com.ge/issues/2..._econ_two.html

[jandra]

A new project has been launched in Georgian port Kulevi , at Black Sea Terminal (BST Ltd ) under State Oil Company of Azerbaijan (SOCAR).
BST reports that corrosion protection project has started at the terminal to protect harbour from the effect of corrosion in its steel sheet piles. The project contains three stages: 1) survey of steel sheet piles; 2) estimating of electrochemical protection application and cathodic protection design; 3) application methods and recommendations. State Research Project Institute “Gipromorneftegaz” is engaged in Steel Sheet Piles Cathodic Protection project.

Recently a group of corrosion specialists from the Institute have visited the Terminal and completed first stage of the project. Institute representatives carried out certain actions including underwater camera survey assessment, measurement of potential difference of pile-water, measurement of specific resistance of soil, inspection of steel sheet piles and concrete wall on splash zone and samples of sea water.
http://www.news.az/articles/economy/33360

[hakz2007]

Making Georgia a Carbon Neutral Country

The FINANCIAL -- The Minister of Environment Protection speaks about renewable energy in Georgia.

Use of renewable energy is regulated by demand for such products on the market, believes Goga Khachidze, Minister of the Ministry of Environment Protection of Georgia. The potential of its development also depends on the people who want to use it. The Minister says that Georgia is a carbon neutral country, as electricity is mainly supplied by hydroelectric stations.

More: http://finchannel.com/Main_News/Geo/...utral_Country/

[hakz2007]

Georgia to build 15 new hydroelectric power plants

Georgia, Tbilisi, Oct. 5 /Trend, N.Kirtskhalia/ A total of 15 new hydroelectric power plants will start to be built in Georgia from 2012, Minister for Energy and Natural Resources, Alexander Khetaguri, said at a meeting of the parliamentary committee on industry economics and economic policy. The total capacity of the hydropower plants will exceed 2,000 MW.

According to him, the investment value of projects that will begin in 2012 total more than $3.5 billion. As known, the implementation of NeskraHPP and HudoniHPP projects should begin next year. The minister said that this year the country is building 10 hydroelectric power plants, with a total capacity of 1.5 billion kilowatt/hours or 300 megawatts. According to Khetaguri, the number of employed at all 10 sites is more than 1,200 people. The minister said that the country is building ParavanHPP, LuhumHPP, KuraHPP, LarsiHPP, Hadori, Gubazeuli, BahviHPP 2 and other several plants.

http://www.hydroworld.com/index/disp...514550508.html

[hakz2007]

Ugulava: electricity tariffs are unfair

Mayor of Tbilisi, Gigi Ugulava, says the residents of the capital will receive twice as much of an advantage from the City Hall’s special voucher in winter then they will through the government's recent decrease in electricity tariffs.

Ugulava said on December 25 that every resident of Tbilisi who is registered in the capital will receive 100 GEL voucher from Tbilisi Budget 2013, while socially unprotected families will be granted with GEL 250 vouchers.

Read more

[hakz2007]

Georgian Energy Minister calls on KazTransGas to deal with company’s debt

Georgia, Tbilisi, March 19 / Trend N.Kirtskhalia /

Georgian Energy Minister Kakha Kaladze suggested representatives of Kazakhstani company KazTransGas, come to Tbilisi in order to start negotiations with the new Georgian government.

As Kaladze stated at a meeting with journalists on Tuesday, the company owes $70 million to the national budget of Georgia, so it is necessary to discuss the situation.

Read more

[Svanidze93]

Грузия может возобновить закупки газа у России

Грузия может возобновить закупки газа у России, заявил министр энергетики Грузии Каха Каладзе.

«Страна не должна зависеть только от одного поставщика, то есть Азербайджана», - сказал Каладзе, передает «Новости-Грузия» со ссылкой на телекомпанию «Имеди».

По данным телекомпании, часть грузинских экспертов поддерживают эту идею, хотя отмечают, что российская цена на газ по сравнению с Азербайджаном дороже на 100 долларов за 1 тыс. кубов.

«Насколько бы хорошим ни был один стратегический партнер, очень хорошо, когда на рынке существует не менее трех поставщиков. Это исключает образование монополии на внутреннем рынке, содействует развитию конкуренции и для нас это создает интересную конъюнктуру», - заявила в эфире телекомпании эксперт по энергетическим вопросам Лиана Джервалидзе.

http://www.apsny.ge/2013/eco/1367898228.php

[Kokoity]

Kakha Kaladze – Work on Building Wind Power Stations Launched
12:27 15-05-2013
Minister of Energy Kakha Kaladze informed journalists that work on building wind power stations has been lunched. He said that the project will be performed presumably from the next year. The Minister says that this will be a pilot project with a 20 megawatt capacity.
“We have to search for the places where this project can be implemented”, Kakha Kaladze said, adding that it is being discussed to realize the project in Kartli and Samtskhe-Javakheti.

http://www.interpressnews.ge/en/econ...-launched.html

[Kokoity]

Индийские инвесторы начинают осуществление гидропроектов в Грузии

Компании TATA POWER и CLEAN ENERGY и фонд IFC INFRAVENTURES приступают к осуществлению гидропроектов в Грузии.

Крупнейшая транснациональная индицйская компания -конгломерат «Тата групп» выразила желание инвестировать в Грузию 24 января в Давосе ан встрече ее представителей с премьер-министром Грузии Бидзиной Иванишвили. На встрече премьер заверил индийских инвесторов, что в Грузии их встретит свободную, справедливую и стабильную бизнес среда.

Как сообщает Кавказ-Пресс в пресс-службе премьер-министра, 10 мая 2013 года ее дочерняя компания Tata Power International Pte Ltd подписала договор с норвежской компанией Clean Energy Invest AS (Clean Energy) и фондом IFC InfraVentures (IFC) об осуществлении в Грузии гидропроектов.

Суммарная мощность гидропроектов составит 400 мегаватт. Проекты будут осуществляться в три этапа. Заврешение первого этапа (185 мегаватт) планируется в первой половине 2016 года. Компании TATA POWER и CLEAN ENERGY владеют по 40% доли, а фонд IFC InfraVentures - 20 процентами. Выработанная электроэнергия в зимний период будет использоваться на удовлетворение внутренних потребностей, а летом выходить на эжкспорт, в том числе в Турцию. Стоимость проекта составляет 400 млн. долларов. Это первый случай, когда инвестор вкладывает в грузинский бизнес сектор сумму такого объема.

«Тата групп» входит в список 50 ведущих корпораций мира. Корпорация имеет свои представительства в 80 странах мира. В нее входят 114 компаний, который работают в восьми секторах экономики.

http://www.btime.ge/page.html?id_node=375&id_file=4372

[Kokoity]

New investors in the Georgian energy sector
By Messenger Staff
Friday, May 17
New investors have appeared in the Georgian energy sector. The India-based TATA group together with Norwegian Clean Energy will build four hydroelectric stations in Adjara at Shuakhevi, Koromkheti, Khertvisi and Skhalta. During the next three years the two companies will spend around $400 million on this project. The first power station will be opened in the summer of 2016. Electricity produced by these power stations will satisfy local consumers' demands and will be also exported in winter. The main destination will be Turkey, which currently has a large energy deficit. However the final decisions about constructing the huge hydroelectric power stations have not yet been made.

http://www.messenger.com.ge/issues/2..._econ_one.html