Energy Specialists, financiers and economists evaluated the economic impact of TANAP. According to them while the ongoing conflict between Russia and Georgia, when more of the country's energy imports come from Russia, alternative energy sources are crucial for the country's energy security. Vakhtang Charaia, the Doctor of Economics, President of the Tbilisi State University Center for Analysis and Forecasting, Sector 3 expert, reports that the project strengthens Georgia's further geopolitical role and security issues, which investors pay attention to.
While speaking to report.ge, Charaia points out that the TANAP project is a Trans Adriatic Pipeline that will transport natural gas to southern Italy through Azerbaijan, Georgia, Turkey, Greece and Albania. Charaia thinks this is a certain guarantee for our country.
"If any sort of problem occurs regarding the pipeline, for example, from an aggressor country, a significant part of Europe's natural gas supply will suffer, which is an added guarantee to our safety. Now we have to sit down and think how to make the most of the gas left in Georgia. TANAP Project gives Georgia energy security and increased economic security. Georgia affirms the status of strategic partner of the West”, explains Charaia and notes that the project will have economic benefits.
"Through Shah Deniz gas pipeline, Azerbaijan supplies Turkey passing Georgia. As a result, we receive 5% of the gas consumed, which is 300 million cubic meters of gas. After the construction of the Trans-Anatolian gas pipeline, which will deliver Azerbaijanian gas to Europe via Georgia and Turkey by 2023, Georgia will receive 1.1 billion cubic meters of natural gas a year as a transit share. In this period, the pipeline capacity will be 23 billion cubic meters, while in the beginning the capacity will be 16 billion cubic meters. The pipeline will annually transfer 16 billion cubic meters of natural gas a year.
Capacity increase is planned by 2023 to 23 billion cubic meters and to 31 billion cubic meters by 2026. These numbers illustrate the economic benefits to the country. According to Charaia, it is planned to reach 60 billion cubic meters, which ultimately will give Georgia three billion cubic meters of free gas. The expert says that this is 1.4 times more than the country consumes today throughout the year.
As of today, Georgia receives about 300 million cubic meters of natural gas for free in exchange for transit, and will receive monetary equivalent of 10% of transit in Armenia (about 130 million cubic meters of natural gas).
According to 2018 data, Georgia consumed 2.2 billion metric cubic of natural gas.
97% of gas imports come from Azerbaijan in Georgia (including free gas), Russia's share equals to 1.7% and only 0.4% comes from domestic production.
The TANAP project costs $ 10 billion. Giorgi Gakharia, the Prime Minister of Georgia participated in the event dedicated to the completion of the Transnational Gas Pipeline Project.
Bela Gelashvili
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