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Georgia and Kazakhstan's gas issue

By Messenger Staff
Friday, June 14
Georgia’s former government created serious problems for the import of natural gas from Kazakhstan to Georgia. The former government attempted to expropriate the gas distribution company KazTransGaz from Kazakh investors and thus negatively affected the investment climate in this country. Since coming to power the Georgian Dream government has promised to diversify the sources of natural gas imports to Georgia. Georgia currently receives most of its natural gas from Azerbaijan and the latter delivers natural gas to Georgia at a very cheap price. No exact figures are available but most experts estimate it is between $160-200 per tcm. However, Kazakhstan charges much more for its gas which it mostly exports to Russia. Kazakhstan wants to raise the price of its gas to $300 per tcm. If Russia refuses to pay for gas at that price Kazakhstan will sell its gas to China, which already pays Turkmenistan $390 per tcm. In comparison to other options Azeri gas is the cheapest and it is unlikely that Georgia will buy Kazakh gas unless the price seriously decreases.