Georgia is looking to diversify its gas imports in light of tense relations with Russia, its sole supplier, who said it would double the current price of $110 per 1,000 cubic meters in 2007. Georgia is now in talks with Azerbaijan and Iran.
"Decisions have been virtually made on the main issues," Zurab Nogaideli said following his visit to Baku, Azerbaijan's capital, Thursday.
He said the energy ministers of Georgia, Turkey and Azerbaijan would meet December 8 in the Georgian capital, Tbilisi, to consider redistributing gas supplies from Azerbaijan's Shah-Deniz field on the Caspian.
In 2007, Tbilisi will buy gas pumped from Shah-Deniz to Turkey via Georgia through the South Caucasus pipeline operated by BP and Statoil at a discounted price.
Georgia also wants to secure additional gas supplies from Shah-Deniz on the Turkish quota.
"Cooperation between Georgia and Azerbaijan in 2007 will become an example for all," Nogaideli said.
He has said Georgia needs 1.5 billion cu m of gas a year, which it hopes to receive from Shah-Deniz in 2007. Russia is currently providing 1.7 billion cu m.
Russia's energy giant Gazprom [RTS: GAZP] has said it will reduce gas exports to Azerbaijan in 2007 by 66.7%, to 1.5 billion cubic meters, against 4.5 billion this year.
Negotiations with Iran are also continuing. "In December, an inter-governmental commission comprised of Georgia and Iran will also discuss gas supplies, and then Georgia will know its gas suppliers and the terms of its gas imports for 2007," Nogaideli said this week.
Tbilisi previously bought gas from Iran under a temporary agreement following explosions in January 2006 on trunk pipelines in Georgia, which caused a suspension in gas supplies from Russia.
