Home / Economy / Natural Gas Transit Via Georgia to Armenia Declined by 60 million Cubic Meters in 2018

Natural Gas Transit Via Georgia to Armenia Declined by 60 million Cubic Meters in 2018

In 2018 Georgia has transited 1.93 billion cubic meters of natural gas to Armenia through the main gas pipeline, according to Georgian Oil and Gas Corporation (GOGC). The figure is lower by 60 million cubic meters compared to 23017.

Revised agreement between Georgia and GasProm Export on natural gas transit has not been signed yet. Therefore, Georgia transits natural gas to Armenia without any legal status.

Negotiations are underway on improving the agreement conditions, Minister of Economy Giorgi Kobulia noted. The agreement remains classified and any changes are expected to remain classified again.

We remind you that starting 2017 Georgia receives cash in exchange for natural gas transit, instead of previous 10% of transited gas. In cash, Georgia receives lower benefits compared the market price of 10% of transited natural gas.
At the same time, the Kremlin has taken decision to raise the price of natural gas for Armenia. Starting January 1, 2019 GasProm supplies 1000 cubic meters of natural gas for 165 USD instead of 150 USD.
Armenia is one of the smallest exports markets for GasProm, less than 1% of total Russian exports. In 2017 GasProm Exports sold 194 billion cubic meters of natural gas.