Shah-Daniz gas deal to be tabled in parliament

The Milli Mejlis permanent parliamentary commission on natural resources, energy and ecology has decided to forward to the parliament the Azeri-Georgian agreement on the transit, transportation and sale of Shah-Daniz natural gas on the territory of the two republics and outside them via the South Caucasus pipeline system.

Chairperson of the commission Asya Manafova stated that the agreement had been signed for 60 years. Construction of the Baku-Tbilisi-Erzurum gas pipeline is expected to last till late 2004, while gas reserves in Shah-Daniz are estimated at 1 trillion cubic meters.

In 2005, the pipeline will transport 2 billion cubic meters of gas. Georgia will be paid $2.5 for the transportation of each 1,000 cubic meters, which will earn Georgia $5 million in the first year. The pipeline from Baku till Erzurum is 694km long, including 280km from Georgia till Erzurum.*