Home / Business / A Multi-million Project Failed because of Problems with the Supply of Gas
A Multi-million Project Failed because of Problems with the Supply of Gas

A Multi-million Project Failed because of Problems with the Supply of Gas

The construction project of the carbamide plant by the Azerbaijani state company SOCAR in Georgia has failed most likely due to the fact that the parties were unable to agree on gas supplies to the future enterprise.

None of the parties explains the details of the disagreement. In particular, the Georgian Energy Minister Kakha Kaladze said that the reason for the suspension of the project was the disadvantage of the project for the Georgian side, as well as for Azerbaijani. Deputy Energy Minister Mariam Valishvili told “Commersant” that negotiations are continuing at this stage, and the project is not derailed, but just delayed.

“We had to supply gas for the needs of the enterprise that we get at the social cost. It is a 20-30% increase in consumption, as the production of carbamide is a very energy-intensive project. We can assume that the problem is in the supply of gas – about 1 billion cubic meters per year, “- she notes. According to her, this is due to the fact that the opening of the Kulevi free industrial zone was delayed which had to include a carbamide factory construction.