Page 40 - bne IntelliNews George country report Sept 2017

9.0 Industry & Sectors 9.1 Sector and corporate news
9.1.1 Oil & gas sector news
Georgia imports most of its gas from Azerbaijan (87%) and receives marginal amounts from Russia as a transit fee for Russian gas exports to Armenia. In 2015, Georgia's gas consumption increased by 19% y/y to 2.49bn cubic metres, prompting negotiations between Tbilisi and Russia’s Gazprom to increase Russian export volumes to Georgia.
Opposition parties have criticised the Georgian government for initiating talks with Gazprom, which is perceived as a political tool of the Kremlin. Until 2007, Georgia used to import all its gas from Russia, but diversified its imports after the 2008 Russian invasion of its territory and after neighbouring Azerbaijan launched its gas production.
American energy company Frontera Resources has made several exploration attempts in Georgia, but appear to have been fruitless thus far.
9.1.2 Transport sector news
US-based SSA Marine has signed an agreement to manage Georgia's currently under construction Black Sea port of Anaklia, for 20 years, according to agenda.ge.
The $2.5bn port project is being developed by a joint venture comprised of Georgian company TBC Holding, American enterprises Moffat & Nichol and Conti International, and Dutch port transactions advisers Maritime & Transport Business Solutions. The port will be able to berth post-Panamex size vessels of 10,000 TEU (twenty-foot equivalent units) and will contribute to Tbilisi's goal of becoming a hub for intermodal transport between China and Europe. The expected completion date is 2020.
The port is close to the contested region of Abkhazia on Georgia's Black Sea coast, and will compete not only with the small Abkhazian port city of Sokhumi, but also with the other large ports in Georgia, Batumi and Poti. The latter is currently working on expanding so as to be able to berth ships as large as 9,000 TEU by 2018.
In January, SSA Marine's senior vice president, Bob Watters, travelled to Georgia, where he met with Prime Minister Giorgi Kvirikashvili among others, sparking rumours that the port operator was considering managing Anaklia.
The terms of the agreement have not been disclosed.
Georgia and Iran are mulling a railway connection, Georgian Prime Minister Giorgi Kvirikashvili and Iranian President Hassan Rouhani announced in a joint press conference after meeting in Tehran on April 24.
40 GEORGIA Country Report September 2017 www.intellinews.com