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KazTransGas – Tbilisi Returns under Kazakh Management

The company KazTransGas – Tbilisi, which manages gas distribution networks of the capital, has made an official statement that the company returns under Kazakh management.

The final agreement on this issue was reached during the visit of Prime Minister of Georgia Irakli Garibashvili to Astana.

In particular, an agreement was signed to write off KazTransGas – Tbilisi’s debt in the amount  of  USD 10 million to Bank of Georgia. The parties also agreed to restructure the debt of USD 34 mln to  the Georgian state-owned Oil and Gas Corporation (GOGC).

Deputy head of the Kazakh state-owned company KazMunaiGas Daniyar Berlimbaev states  that such an agreement has been reached.

“We had a dispute with the previous government, moreover, we were under pressure. Now we negotiated and resolved financial problems. The issue has been resolved – KazTranGas  will pay USD 10 million in  6 months, and timing of the return of Kazakh management should be settled  by the Georgian government. We are interested in continuing to work in Georgia. First of all, it’s a good business, but we also have strategic objectives for the future. At this stage we receive gas from Azerbaijan, in the future it is possible that we will get  it from Kazakhstan or Russia,”- Berlibayev notes.

Tbilgas was purchased by KazTransGas for USD 12.5 million in 2006, but in 2010 due to the accumulated debt of GEL 80 million, the gas network was transferred under  the control of the state.