Natural Gas and Georgia

Caspian Basin: Georgia, which serves as a crossroads for Caspian Basin energy exports, has become the focal point of a three-way scramble among natural gas exporters, according to The Moscow Times. Citing a wintertime shortage of natural gas, Tbilisi is considering deals from Azerbaijan, which already supplies 90 percent of Georgia gas; Russia, which provides the other 10 percent as a fee for transiting Russian energy to Armenia; and, now, Iran. As the price of natural gas keeps declining, competition among Caspian Basin suppliers is picking up. Georgia selection could have long-term implications. Both the European Union and the United States have promoted the corridor as a way to wean Europe off gas imports from Gazprom, Russia energy behemoth, and an economic tool often used by the Kremlin for geopolitical purposes. Diversifying Georgia gas supplies would mean moving away from Azerbaijan, the energy power behind the Southern Gas Corridor, an upcoming mega-gas-export tube that crosses Georgian territory en route to Turkey and Europe. (news.financializer.com). As reported in the news.