Georgia and Azerbaijan deepen energy partnership

Georgia and Azerbaijan have signed a comprehensive package of energy and infrastructure agreements, further expanding their cooperation along the so-called Middle Corridor. The aim is to strengthen Georgia's role as a regional transit hub between Asia and Europe. The agreements were concluded on May 18 at a meeting between President Ilham Aliyev and Georgian Prime Minister Irakli Kobakhidze in Baku. They include the supply of natural gas, electricity imports and electricity transit, the reopening of the Baku-Tbilisi-Supsa pipeline and renovation work on the Baku-Tbilisi-Kars railroad line. Focus on the Middle Corridor The new agreements strengthen Azerbaijan's position as Georgia's most important energy partner. At the same time, both countries are pushing ahead with the expansion of the so-called Middle Corridor - a trans-Caspian trade route that connects China and Central Asia with Europe via the South Caucasus and Turkey. The route is seen as an alternative to Russian transit routes. Kobakhidze described the electricity import and transit agreement in particular as "very important". According to the Prime Minister, the pipeline agreement between Baku, Tbilisi and Supsa will secure Georgia annual transit revenues in the tens of millions. Georgian Foreign Minister Maka Botorishvili also emphasized the strategic importance of Azerbaijan for the development of the Middle Corridor. "Azerbaijan is an indispensable strategic partner for us, especially when it comes to future projects such as the Middle Corridor," she told local media. The full exploitation of Georgia's transit potential is one of the most important priorities of the government in Tbilisi. Baku-Tbilisi-Supsa pipeline to restart Particular attention is being paid to the recommissioning of the Baku-Tbilisi-Supsa pipeline. The pipeline connects Azerbaijani oil fields with the Georgian Black Sea coast and has been out of operation for several years. Georgian Economy Minister Mariam Kvirivishvili explained that, following negotiations, the government had decided to put the pipeline back into operation together with the state-owned Azerbaijani oil company SOCAR. The pipeline has a capacity of around 100,000 barrels per day. Expansion of the Baku-Tbilisi-Kars rail link The two sides also signed a protocol on the modernization and expansion of the Marabda-Kartsakhi railroad line on the Turkish border. The line is part of the Baku-Tbilisi-Kars international rail project, which has been connecting the three countries since 2017. The railroad line is becoming increasingly important as more and more companies are switching their supply chains and avoiding Russian transit routes. The Georgian Marabda-Kartsakhi section in particular has been a bottleneck to date, and its modernization is crucial for increasing transport capacity. Georgia remains dependent on energy imports As Georgia has hardly any hydrocarbon deposits of its own, the country remains heavily dependent on energy imports. Azerbaijan is already the country's most important gas supplier. With the new agreements, this cooperation is now expanding to include the electricity sector. At the same time, Georgia will secure additional income from transit fees and strengthen its economic role as a central transit route between Europe and Asia. The post Georgia and Azerbaijan deepen energy partnership appeared first on ostwirtschaft.de.