The impact of Iran-EU relationship in energomarket on natural gas tariff of Georgia (tariff decrease possibilities)
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Date
2018
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Publisher
Ivane Javakhishvili Tbilisi State University Press
Abstract
The importance of natural gas is characterized with increasing tendency in international economic. This is caused by increasing demands on natural gas and significance as a political weapon. EU is one of the biggest gas consumers. According to the 2017 statistical data, EU takes 12-13% in total consumption. The basic gas supplier of EU is Russia. Russia supply varies between 37-42% in total gas import in 2016-2017. 2006-2007 and 2008-2009 crises caused struggle problems to Europe and the whole world. Russia used its energy power to impact on EU. That’s why the main gas supplier reduced its supplying. These activities had negative influence on economic da energy sectors. EU tries to avoid energy crisis again. One of the biggest competitors of Russia in gas sector are Iran with its gas reserves. This country has ability to become partner of EU and supply natural gas through Caucasus, namely, Azerbaijan and Georgia. This will help Georgia decrease gas tariff. According to the statistical data of 2016, Iran took the first place among natural gas reserves and Russia took only the second one but in 2017 they exchanged their positions. The main aim of the present work is to investigate the main international gas pipelines crossing Georgia territory, imported gas quantities that is consumed in the country, current gas tariff for home consumption and its reduction possibilities. There should be highlighted that there is less ability to decrease technical expanses as this economic sector is regulated one and competitor routes will only increase gas supplying prices. In the presented investigation is calculated Russian gas tariff for Europe, Azerbaijan and Russian gas price for Georgia totally as this case is defined with contract and Iranian gas tariff for Europe and Georgia for every 1 000 cubic m gas.
Description
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Keywords
Gas tariff; Europe; Caucasus; Iran; Russia
Citation
III International Scientific Conference: "Challenges of Globalization in Economics and Business", Tbilisi, 2018, pp. 151-155