Home / Economy / Socar Buys New Gas Pipeline Networks in Georgia
SOCAR Increases Share in its Georgian Subsidiary

Socar Buys New Gas Pipeline Networks in Georgia

SOCAR Georgia Gas, a subsidiary of Azerbaijan’s state oil company SOCAR, has acquired gas pipelines in a number of Georgian districts with a total length of 594,000 running meters, according to the order published on the official website of Georgia’s government.

The gas pipelines have been transferred to the company for 21.3 million lari ($9.5 million at the current exchange rate) in direct sale.

In particular, SOCAR Georgia Gas has received gas transmission networks in Kaspi, Gardabani, Zestaponi, Zugdidi, Ozurgeti, Lagodekhi, Akhmeta and Oni municipalities.

“Not only SOCAR, but also Georgian state builds gas pipelines in Georgia,” head of SOCAR Energy Georgia (Georgia’s subsidiary of SOCAR) Mahir Mammadov said in an exclusive interview with Trend. “SOCAR buys gas pipelines from Georgia at a cost price with a deferred payment, and we further operate gas pipelines. So far, we have bought gas pipelines from Georgia for 40 million lari with a deferred payment.”

In line with the terms of the transaction, the cost of the real estate purchased by the company in the amount of 21.3 million lari should be fully paid within 48 months, including 8.5 million lari – within 36 months.

It was earlier reported that on Dec. 26, 2008, the government of Georgia and SOCAR signed an agreement according to which 23 regional gas distributing companies and a number of gas companies and networks were transferred to SOCAR on the terms of its investment in Georgia’s gas infrastructure.

In October 2012, SOCAR became the owner of Itera Georgia, a 100 percent subsidiary of ITERA International Energy LLC, becoming almost the only supplier and distributor of natural gas in Georgia.

Presently, SOCAR is the main supplier of natural gas, oil and oil products to Georgia. Subsidiary companies of SOCAR are engaged in expanding and modernizing gas distribution systems in the country, developing a network of filling stations under the SOCAR brand, and own an oil terminal in the Georgian Black Sea port of Kulevi city, through which Azerbaijani oil and oil products are transshipped to global markets.

Over the years of its activity in Georgia, SOCAR has invested more than $1.5 billion in various projects in the country. SOCAR Georgia Gas has laid gas pipelines with the length of about 6,000 kilometers in Georgia, which made it possible to supply gas to more than 210,000 subscribers, Trend.az reports.