State Minister for Economic Reform Issues Kakha Bendukidze said on February 22 that privatization of the gas pipeline system poses no threat to Georgia?s energy security. He said that along with Russian energy giant Gazprom, which is eyeing Georgia’s gas pipeline system, the consortium that is heading-up the construction of the U.S.-backed Baku-Tbilisi-Erzerum gas pipeline can also participate in the privatization process.
?I can not understand why it should pose a threat if those gas pipelines, through which Georgia receives gas from Russia, will be sold to Russia and if they will take care of [the gas pipeline system],? Kakha Bendukidze told reporters.
In an interview to the Italian newspaper La Stampa published on February 20, Georgian President Mikheil Saakashvili said that talks are underway with the Russian energy giant Gazprom over privatization of Georgia?s gas pipeline system. ?Negotiations are in progress… I prefer not to say more,? Saakashvili answered when asked whether Georgia intends to sell its gas pipelines to Russia.
In 2003, when the Georgian government and Gazprom signed a memorandum on strategic cooperation for 25 years, 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.
?I think the fact that Baku-Tbilisi-Erzerum gas pipeline is so sensitive to this issues means that the Georgian gas pipeline system might have two potential buyers, which is, of course, a positive moment,? State Minister Kakha Bendukidze said on February 22.
The Baku-Tbilisi-Erzerum gas pipeline is a part of much broader, BP-led oil and gas development project in the region, which also includes the Baku-Tbilisi-Ceyhan (BTC) Main Export Oil Pipeline Project.
The agreement between the state-owned Gazprom and Georgia signed in 2003, which is still enforced, 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.