Page 53 - GEORptOct22

9.0 Industry & Sectors 9.1 Sector news
9.1.1 Oil & gas sector news
Tengizchevroil to divert 200,000 tonnes of Kazakh oil to Batumi port
Fuel prices expected to drop in Georgia
Georgia reduces gas importa, increases oil imports from Azerbaijan
Chevron-led Tengiz-field operator Tengizchevroil (TCO) in Kazakhstan plans to divert 200,000 tonnes of oil to Georgia's Batumi port in October via rail, two sources familiar with the company's plans briefed Reuters on September 20.
The move is part of Kazakhstan’s ongoing search for alternative export routes amid ongoing maintenance works at the CPC pipeline’s Black Sea terminal in Novorossijsk, Russia. The CPC has shut down two of the three loading facilities at the terminal for maintenance, leading to a sharp decrease in loading capacity.
TCO diverted some oil to Batumi earlier in 2022, when the CPC terminal carried out similar unplanned maintenance.
Continuous maintenance works and shutdowns of loading facilities at the Black Sea port this year are widely seen as moves made by Russia to prevent Kazakh oil from reaching Europe as part of its reaction to Western sanctions over Moscow’s invasion of Ukraine.
Georgia's Economy Minister Levan Davitashvili said that the government expects domestic fuel prices to "significantly decrease" in August. According to the minister's announcement on August 11, the government had discussed matters of competition in the fuel market and exploration of cheap sources of fuel supply with the private sector.
During his meeting with representatives of networks of major fuel distributors Georgia's Finance Minister Lasha Khutsishvili and Davitashvili commented on the current situation in the country's consumer demand for oil products.
According to the Georgian National Statistics Office (GEOSTAT), the country imported 1mn tonnes of gas from Azerbaijan worth $162mn in 10M21.
The value of gas imported from Azerbaijan decreased by $41mn or 20.4% annually, and the volume decreased by 191,797.78 tonnes or 15.05% in the same timeframe. Georgia imported 1.3mn tonnes of gas from Azerbaijan worth $204mn in 2020. Overall Georgia imported a total of $235mn worth of gas abroad in 10M21, which is 1.5% less than 2020. Thus, Azerbaijan's share in Georgia's gas imports during the reporting period was 69.06%.
When it comes to oil, on the contrary, Georgia has sharply increased imports from Azerbaijan in the same timeframe. Georgia imported 204179 tonnes of oil worth $113mn. The value of oil increased by $62mn or 2.22 times in annual terms, and the volume increased by 37045 tonnes or 22.6%. In contrast, Georgia imported 167,133.82 tonnes of oil from Azerbaijan worth $50mn in 2020.
53 GEORGIA Country Report October 2022 www.intellinews.com