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Azerbaijan, Romania, Georgia to sign memorandum on construction of terminals for liquefied gas

Oil&Gas Materials 10 April 2010 13:31 (UTC +04:00)

Georgia, Tbilisi, April 10 / Trend N. Kirtskhalia /

The agreement on the construction of terminal for liquefied gas in Georgia will be signed in Bucharest April 13. The agreement will be signed by Ministers of Energy from Azerbaijan, Romania and Georgia, Georgia's Ministry of Energy told Trend.

The memorandum "Mutual cooperation in the field of gas supplies" includes the construction of two terminals for liquefied natural gas - one in Georgia, the other one - in Romania. According to preliminary data, the cost of the project is 4.6 billion euros.

"Any transit project for the Georgian economy is very important. In the case of a new project Georgia's budget will receive additional revenue," Georgian Energy Minister Alexander Hetaugri told Trend, commenting on the forthcoming signing of the memorandum.

"This project once again confirmed the importance of transit of our country in the region, we represent one of the main alternatives to the EU in energy supplies bypassing Russia," he said.

Minister stressed that in this case Georgia will also receive additional volumes of gas. "This project once again confirmed the importance of transit in our country in the region, we represent one of the main alternatives to the EU in energy supplies bypassing Russia," - he said.

The memorandum on the implementation of this project was signed between Georgia and Romania in October 2009, and between Azerbaijan and Romania - in early 2010. It envisaged the creation of a working group to sign a memorandum.

Today, the construction of the terminal processing Azerbaijani gas at Georgia's Black Sea coast (SOCAR owns the oil terminal in Kulevi) and its transport by the ships to Romania or Bulgaria for further shipment via domestic gas pipeline network of Europe are being discussed. The project is considered in two directions - LNG and CNG. The first one is the construction of gas liquefaction plant, and the second - delivery of gas directly to the ship for its compression. It deals with about 7-20 billion cubic meters of gas.

SOCAR head Rovnag Abdullayev said that there are intentions to prepare a feasibility study of the gas export project from the Black Sea coast of Georgia. "Preparation of feasibility study will allow us to identify the most advantageous option [gas exports via the Black Sea]. We have several options, including the export of LNG and CNG. There are also possibilities for transit through Turkey. The variety of these options will allow us to choose the right path," he said.

Abdullayev said that Romania and Bulgaria are interested in a project of gas export via the Black Sea. Talks are held with both parties now.

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