SOCAR Announces Plans for Acquiring Georgia's Main Gas Pipeline Stake
The State Oil Company of Azerbaijan (SOCAR) has showed interest in acquiring a stake in Georgia's trunk gas pipeline, SOCAR Energy Georgia director general Mahir Mammedov said.
Trend.az news portal reports referring to Mammedov, SOCAR has not launched negotiations over the issue, but supervises the process, because the company considers the project of crucial importance.
Mammedov said SOCAR Energy Georgia has much experience in exploitation of a main gas pipeline, because SOCAR manages transportation and distribution networks in Azerbaijan.
SOCAR exports Azerbaijani natural gas to Georgia and owns thirty gas distribution networks in Georgia
As reported, the Georgian government considers the availability of selling a certain stake of the trunk gas pipeline and rules out the full privatization of the asset. In making a speech at the Georgian parliament on July 2, Georgian Prime Minister Nikoloz Gilauri noted the issue is of privatizing a 15 percent stake of Georgian Oil and Gas Corporation (GOGC), the owner of the main gas pipeline. Nevertheless, later the ruling majority MP Petre Tsiskarishvili pointed out even a 25 percent stake may be sold, but only minoritary shares, and the government will be able to maintain a casting vote in the asset.
In the meantime, the Georgian Oil and Gas Corporation (GOGC) held an international tender on acquisition of construction materials for the Poti-Senaki 30-kilometer section of the main gas pipeline.
Four companies took part in the tender, including SOCAR-Neftigastikint, Truboizolcomplecr Ltd, STEMCOR and New Metal Georgia.
The winner company will be named in several days.
GOGC was authorized to construct the 30-kilometer section in April 2010. The new gas pipeline will supply natural gas to the liquid petroleum gas terminal, the Black Sea resorts and recreation zones of Georgia, as well as the towns of Poti, Senaki and Khobi.
The project implementation will start in August 2010 as part of the grant the US Agency for International Development (USAID) has approved to the Georgian government.
