Azerbaijan, Georgia and Romania sign agreement to establish joint venture under AGRI project

Azerbaijan, Georgia and Romania signed an agreement establishing a joint venture under the Azerbaijan-Georgia-Romania Interconnector (AGRI) gas transportation project, the Sate Oil Company of the Azerbaijan Republic (SOCAR) reported.

The agreement was signed among SOCAR, Georgian Oil and Gas Corporation and the Romanian Romqaz.

The joint venture will operate in Bucharest. The equity share is 33 percent for each participant. The joint venture will engage in regulatory work to prepare a feasibility study and search for the necessary investment.

Three capacity volumes are being considered for the project, Azerbaijani Industry and Energy Minister Natig Aliyev said: 2 billion cubic meters of gas a year, 5 billion cubic meters and 8 billion cubic meters

According to preliminary data, the cost varies from 1.2 billion to 4.5 billion euros depending on capacity.

A memorandum of understanding on cooperation in the field of liquefied gas and its transportation under the Azerbaijan-Georgia-Romania Interconnector project was signed in Bucharest on April 13.

Georgia, Azerbaijan and Romania signed an agreement on the establishment of a joint venture in a project to transport Azerbaijani gas to Europe on May 12.

The project to supply Azerbaijani liquefied natural gas to Romania envisages the construction of two terminals for liquefied natural gas – one in Georgia, the other in Romania. According to preliminary data, the project will cost 4.6 billion euros.

The project envisages transporting Azerbaijani gas via pipelines to the Black Sea coast of Georgia, where the gas will be liquefied at a special terminal, after which the gas will be delivered to the terminal in the Romanian port of Constanta by tankers. Later the liquefied gas will be converted into natural gas and, using gas infrastructure available throughout the country, will be sent to cover the needs of Romania and other European countries.

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