PM: Privatization of Gas Pipelines Currently not on Agenda

Georgian Prime Minister Zurab Zhvania said, on January 31, that privatization of the gas pipeline system, including the Tbilisi gas distributing company Tbilgazi, ?is not on the agenda currently.?
 
?During talks with representatives from [Russian energy giant] Gazprom [on January 21], I said that we should not touch the issue of privatizing gas pipelines. We [the authorities] should not permit the Shah-Deniz gas pipeline project to become endangered,? the Georgian Prime Minister said at a news conference organized by the Tbilisi-based Imedi radio station on January 31.
 
Gazprom makes no secret about the fact that the company is interested in privatizing Georgia?s gas pipeline system.
 
Zhvania said that in order to sell the gas pipeline system relevant amendments should be made to the law on privatization, which prohibits privatization of the gas pipeline system. 
 
Zhvania does not rule out launching ?argued discussions? between the Parliament and the Government over identifying facilities with strategic importance.
 
?I considered Telasi [the Tbilisi power distributing company] and Tbilgazi strategic facilities. However, It is quite unclear when strategic importance is discussed in regards to gas pipelines,? the Georgian Prime Minister added.  
 
In an interview published by the Georgian daily Rezonansi on January 31, Parliamentary Chairperson Nino Burjanadze said that she is ?categorically against the selling of the gas pipeline system, especially to Russia.?

The Georgian gas pipeline system includes pipes which distribute gas in the Georgian regions and pipelines which are used for transporting gas from Russia to Armenia. Observers say that the state-run Gazprom is mainly interested with taking over transit gas pipelines.

On July 1, 2003 the Georgian government and Gazprom signed a memorandum on strategic cooperation for 25 years.

The agreement envisages the supply of natural gas to Georgian customers and the rehabilitation of gas pipelines, including two trunk-line gas pipelines, one of which will be used for transporting gas to Armenia and the other to Turkey, via the Adjara Autonomous Republic.

Ex-Georgian President Shevardnadze?s administration came under fierce criticism from the opposition for signing this deal, as the agreement was considered a threat to the  implementation of the U.S.-backed Baku-Tbilisi-Eresrum gas pipeline project.