Tuesday, 11 September 2001

AZERBAIJAN, GEORGIA HOLD LONDON TALKS ON GAS PIPELINE DISPUTE

Published in News Digest

By empty (9/11/2001 issue of the CACI Analyst)

Azerbaijan and Georgia were starting talks in London Tuesday over a tariffs dispute that has been holding up agreement on a multibillion dollars pipeline to ship gas from the Azeri offshore field of Shah Deniz to Turkey. The delay is threatening Azerbaijan's agreement signed earlier this year to supply some 2 billion cubic metres (bcm) of gas to Turkey starting in 2004-2005 and rising to 6.6 bcm by around 2008.
Azerbaijan and Georgia were starting talks in London Tuesday over a tariffs dispute that has been holding up agreement on a multibillion dollars pipeline to ship gas from the Azeri offshore field of Shah Deniz to Turkey. The delay is threatening Azerbaijan's agreement signed earlier this year to supply some 2 billion cubic metres (bcm) of gas to Turkey starting in 2004-2005 and rising to 6.6 bcm by around 2008. According to the Financial Times Tuesday, Azerbaijan thought it sealed a deal on transit fees with Georgia when offering a rate of Dlrs 2 per 1,000 cubic meters and was preparing a signing ceremony with President Edward Shevardnadze in Baku at the end of July. But Georgia was reported now to be insisting that it should receive at least Dlrs 5 per 1,000 cubic meters to correspond with international rates, recommended by the World Bank. The Financial Times said that the operator of Shah Deniz, BP, which is sending a representative to the London negotiations, was warning that that the pipeline through Georgia could be seriously delayed if an agreement is not reached by the end of September. (IRNA)
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The Central Asia-Caucasus Analyst is a biweekly publication of the Central Asia-Caucasus Institute & Silk Road Studies Program, a Joint Transatlantic Research and Policy Center affiliated with the American Foreign Policy Council, Washington DC., and the Institute for Security and Development Policy, Stockholm. For 15 years, the Analyst has brought cutting edge analysis of the region geared toward a practitioner audience.

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