In 2020, volumes of gas exported from Azerbaijan to Georgia amounted to 1.1 bln cubic meters, a 2.8% reduction in annual exported volumes. The 2020 report by the Ministry of Energy of Azerbaijan has released this information.
In 2020, Azerbaijan sold 13.5 bln cubic meters of gas in foreign countries, with the total sales exceeding the amount sold in 2019 by 15.6% or $1.8 bln.
Natural gas is supplied to Turkey via the South Caucasus Pipeline (Baku-Tbilisi-Erzurum) and the Trans-Anatolian Gas Pipeline (TANAP). It is transported to Georgia through the Baku-Tbilisi-Erzurum and Gazimammad-Gazakh pipelines.
In the current year, Georgia will get a total of 2.518 bln m³ of natural gas from Azerbaijan: 1.014 bln from Shah Deniz and 1.504 from the SOCAR. Additionally, Georgia will purchase 200 m³ of gas from Russia. The local gas extraction is also increasing (estimated at 11.08 mln m³).
Azerbaijan put forward the initiative to create the Southern Gas Corridor. Azerbaijani leader Ilham Aliyev said that they drew up the Energy Map for Eurasia. In his words, Azerbaijan assumed the responsibility of funding the project by building three interconnected 3,500 km pipelines, with this enabling European customers to get Azerbaijani gas. Aliyev stressed this is beneficial for both Europe and Azerbaijan.
Georgia is a host country in the SGC, with this implying that following the corresponding agreements, Georgia will get the SGC gas at a considerably reduced rate. The options contract enables the country to get around 5% of gas passing through it annually. The deal is valid before 2066. The additional gas purchase and sale agreement is in force until 2026. In accordance with the agreement, Georgia will receive around 500 mln cubic meters of gas annually.
The SGC comprises the key components as follows: the South Caucasus Pipeline Expansion Project (SCPX), the Trans-Anatolian Natural Gas Pipeline (TANAP), and the Trans Adriatic Pipeline (TAP).
In 2021, Georgia is set to receive 1.014 bln cubic meters of gas in exchange for allowing Azerbaijani gas to pass through its territory. This year, the volume of additional gas for Georgia will amount to 508.7 mln cubic meters, with this surpassing the volume of gas (888.6 mln cubic meters) Georgia was supplied by in 2020 via the SGC by 126 mln cubic meters.
