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Georgia lies at a strategic location between energy sources in the landlocked Caspian Sea and the Mediterranean, and thus will play an increasingly important role in the transport of Caspian energy sources to meet the world’s demand for energy. In addition, Georgia has potential for its own oil production, as the country’s first oil field, Samgori, was discovered in 1974, and numerous foreign companies are currently undertaking exploration and production potential. The government of Georgia has several state energy enterprises listed for privatization that can be searched for in English here. Georgia’s Energy sector can be divided into: 1. Oil and gas pipelines (BTC/SCP) Georgian Energy Sector Presentation 1. Pipelines The $ 2.9 billion Baku-Tbilisi-Ceyhan (BTC) pipeline, completed in spring 2005 by an international group of partners with BP as operator, carries nearly 1 million barrels per day of crude oil from Azeri oil fields through Georgia to the Turkish Mediterranean port of Ceyhan. At 1770 km long, it was the world’s biggest pipeline project and is one of the longest pipelines in the world. In addition to the BTC, two other pipelines carry Caspian oil to the west. One is the Baku-Novorosiysk pipeline, which goes through Russia and the Baku-Supsa pipeline, which terminates at the Georgian Black Sea coast and has limited capacity. The advantage of BTC is that it carries oil to the Mediterranean seaport bypassing the Black Sea and very busy Bosporus Strait. The South Caucasus Pipeline, currently under construction at 690 km, is designed to deliver natural gas from the Shah Deniz gas field in the Caspian to consumers in Azerbaijan, Georgia, Turkey and other countries. It runs directly alongside the BTC pipeline through Azerbaijan, Georgia and Turkey and then joins the Turkish gas distribution system. By 2006 it will have a capacity of 7 billion cubic meters though this is expected to double in the future.
2. Fossil Fuel Exploration Eleven oilfields with confirmed reserves of 28 million tons have yet to be explored. Larger oil reserves are assumed to exist. The oil potential of the Black Sea shelf is estimated at 70 million - 1.3 billion barrels. Large volumes of natural gas are thought to exist along the Black Sea coast in Adjara. Gas potential may be about 125 billion cubic meters, while 8.5 billion cubic meters have already been explored. Coalfields with 400 million tons of coal reserves have been already explored. Several foreign companies are involved in exploration and production. These companies are Anadarko, BP Exploration, CanArgo, Frontera Resources, Swiss National Petroleum, and German GWDF.
3. Oil derivatives import and distribution No significant oil refineries exist in Georgia. Oil derivatives such as petrol, diesel fuel, black oil, and lubricants make up the largest percentage of imports, reaching USD 320 million in 2004. Petrol is imported largely from Greece, Azerbaijan, Romania, Bulgaria, and Turkmenistan. A number of companies operate on the market, the largest being Lukoil, CanArgo Standard Oil Products, and EKO Georgia. The popular quality lubricant brands are BP, Mobil, Chevron, and Lukoil. The lower but high-volume segment of the lubricants market is occupied by cheaper brands from Russia and Iran. Mineral Fuel & Derivatives Import
4. Electricity One of the most significant impediments facing the business and investment climate in Georgia is the lack of stable electricity supply. Although the situation has improved considerably over the last year in the capital, the regions are still characterized by frequent and rolling brown outs. The government has increased funds to rehabilitate the electricity infrastructure, and has proposed plans for a new hydropower plant. Currently, nearly ¾ of Georgia’s electricity is generated by hydropower plants. Thermal power plants meet 10% of demand while the remaining 15% is satisfied by imports (mainly from Russia and Armenia). The state’s electricity distribution company, UEDC, has been privately managed since 2003 by PA Consulting. To read more, click here. 4.1. Legislation on Electricity Georgian Law on Electricity and Natural Gas 4.2. Statistics Percentage of Total Collections in Electricity Distribution and Cash Collections AmCham and/or EUGBC Members
BP Exploration Georgia
BP Capital V.O.F BP is one of the world's largest energy companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items. BP has transformed: growing from a local oil company into a global energy group; employing over 96,000 people and operating in over 100 countries worldwide.
Wissol Georgia
Greco Group IDC Ltd: Investigation, Design, Construction Total STATOIL Elmavalmshenebeli JSC Georgian Industrial Group Holding
JKX Navtobi Anadarko Georgia
Frontera Resources Wenaas Caspian Ltd. EKO Georgia This page was last updated on: April, 2009 |
 Ministry of Economic Development of Georgia - Privatization PortalAMCham Mag - Georgia & the Nuclear Energy Government Energy Policy and Strategy ReportGeorgia's Energy Policy - Overview of Main DirectionsGeorgia’s State Energy Policy in the Natural Gas Sectorreport on tariffs on electricity and gas in GeorgiaGeorgian Law on Electricity and Natural GasMarket RulesEnergy Report. June 2006Percentage of Total Collections in Electricity Distribution and Cash CollectionsPower Supply of GeorgiaGeorgian Energy Sector Presentation 2005Report on Effective Utilization and Preservation of EnergyReport on Potential for RenewablesTI 8th report on Oil and Gas Potential of GeorgiaBP statistican review of world energy 2008
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© American Chamber of Commerce in Georgia, 2005-2007 Developed by ITDC 
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Information on this webiste is subject to change without prior notice. Although every reasonable effort is made to present current and accurate information, the American Chamber of Commerce in Georgia makes no guarantees of any kind and reccomends professional advice be sought before making any business or investment decisions. |
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