Caspian Energy (CE): Mr. Kaladze, how would you evaluate the role of Georgia in the Southern Gas Corridor, and in general in the issue of energy supply diversification? Which goals does Georgia face in this regard?
Kakha Kaladze, Vice Prime Minister and Minister of Energy of Georgia: The Southern Gas Corridor is considered as a major alternative energy supply corridor for the EU. Through realisation of this initiative Caspian resources will be transported to the EU market and definitely Georgia already proved to be a reliable transit country. Georgia, together with Azerbaijan and Turkey, is a part of the Southern Gas Corridor and we have complimenting interests to play an important role in creating the alternative supply corridor for the largest energy market in the world.
CE: Which benefits does Georgia receive from regional energy projects? What are your expectations from implementation of future projects?
Kakha Kaladze: Implementation of large-scale regional energy projects contributes to further economic development of countries involved. What we expect is promotion of investments and employment, improved geopolitical standing, financial and security benefits. Every single successfully implemented project like South-Caucasus Gas Pipeline, Baku-Tbilisi-Ceyhan and Baku-Tbilisi-Supsa oil pipelines, new interconnections with Turkey and Azerbaijan for power exchanges creates sound precondition for future projects.
CE: Is the country’s infrastructure ready to handle large volumes of energy resources?
Kakha Kaladze: Georgia has a diversified infrastructure of railways, pipeline systems, and power transmission network, which still has a capacity to handle increased volumes. There is no problem to initiate new infrastructure projects to transport even large volumes if required. South-Caucasus-Pipeline Expansion and Railway modernization projects are the demonstration of scaling up the transportation capacities within the country.
CE: Does Georgia plan to develop or take part in LNG projects? What do you think about their economic expediency?
Kakha Kaladze: Georgia supported the initiative of developing the Azerbaijan-Georgia-Romania Interconnection (AGRI) project, which is the first initiative for LNG transportation on the Black Sea. Several Black Sea countries are also considering construction of regasification facilities. To advance this project full-fledge feasibility study needs to be finalized and further analysis performed.
CE: What would you say about the potential of the Black Sea shelf with regard to energy exploration?
Kakha Kaladze: As you are probably aware exploration works are in progress on the Black Sea shelf in Turkey, Romania, Ukraine, and Russia. Georgia has not granted exploration license on its shelf so far. It is assumed that significant oil and gas reserves are concentrated in the Black Sea, and that is why major energy companies are investing heavily in this area. As for Georgia, we are in process of assessing available data, which will be followed by the announcement of international bidding for exercising exploration rights on the Georgia shelf.
CE: Do you plan to develop the alternative energy sector?
Kakha Kaladze: Promotion of utilization of alternative energy resources is the priority direction of the energy policy of Georgia. Country has the largest untapped hydro resources per capita in the world. The policy objective is to increase energy security of the country by promoting domestic production and export potential for alternative energy.
CE: How would you evaluate the possibility to create the Azerbaijan-Georgia-Turkey-EU electric power flow?
Kakha Kaladze: This is a very perspective direction. Development of interconnection lines with Turkey and Azerbaijan is definitely serving cross-border trade between the countries. We finalized already 400 KV line with Turkey and 500 KV line with Azerbaijan. We have plans to compliment the East-West energy transportation corridor with a new product – electricity.
Thank you for the interview
