კონფერენცია

∘ Solomon Pavliashvili ∘ Zurab Garakanidze ∘
THE IMPACT OF THE PANDEMIC ON THE "EU SOUTHERN GAS CORRIDOR" (SGC) IN GEORGIA

Summary

Between 2000 and 2015, world gas consumption increased by almost 45% - from 2405 to 3469 bcm. The share of gas in the world's fuel and energy balance in last years also increased to 22-23%. According to similar oil statistics, its consumption increased by only 10-11% during the same period, indicating a serious competitiveness of the natural gas with oil, and a serious alternative to the other energy resources. Prior to the pandemic, trillions of turnover of the gas market allowed us to talk about approaching the status of a gas market as the so-called global in terms of gas pipelines stretching between macro-regions, as well as maritime shipping routes. The months-long process of spreading Coronavirus "Covid 19" has shown that the full implementation of the "EU Southern Gas Corridor" (SGC) projects in Georgia, in addition to Russia's direct military or "soft" intervention, will be hindered by the Coronavirus pandemic.

Soon, it will be necessary to build gas-liquidation terminals in our Black Sea ports to transport Caspian gas by liquid tankers in the form of liquefied petroleum gas (LNG), which will no longer be physically utilized into the EU's SGC pipes. However, the pandemic of the new Coronavirus may contradict the above-mentioned goals of Georgia and the European Union. Supporters of the pipelines have strong anti-epidemiologists’ argument which is very simple - long-term gas contracts based on a pipeline trade, when LNG gas "Spot" trade comparative advantage is that the gas supplier and the gas consumer for decades do not meet each other, they have no social contacts. However, the "Spot" trade requires frequent contacts with maritime transport gas "supply chain" and periodic changes in that supply chains.

The future transfer of Azerbaijani gas via Georgia and Turkey to the Nakhchivan Autonomous Republic according to signed on February 25, 2020 memorandum of understanding between Azerbaijan and Turkey, evidences this.

Keywords: Coronavirus, South Gas Corridor, SWAP Contract, LNG Liquid Gas, Spot agreement, Kars-Igdir-Nakhchivan Railway,Baku-Nakhchivan Gas Pipeline.

Ivane Javakhishvili Tbilisi State University Paata Gugushvili Institute of Economics International Scientific C O N F E R E N C E S "ECONOMY – XXI CENTURY"

E ISSN 2587 - 4691	∘ Solomon Pavliashvili ∘ Zurab Garakanidze ∘ THE IMPACT OF THE PANDEMIC ON THE "EU SOUTHERN GAS CORRIDOR" (SGC) IN GEORGIA Summary Between 2000 and 2015, world gas consumption increased by almost 45% - from 2405 to 3469 bcm. The share of gas in the world's fuel and energy balance in last years also increased to 22-23%. According to similar oil statistics, its consumption increased by only 10-11% during the same period, indicating a serious competitiveness of the natural gas with oil, and a serious alternative to the other energy resources. Prior to the pandemic, trillions of turnover of the gas market allowed us to talk about approaching the status of a gas market as the so-called global in terms of gas pipelines stretching between macro-regions, as well as maritime shipping routes. The months-long process of spreading Coronavirus "Covid 19" has shown that the full implementation of the "EU Southern Gas Corridor" (SGC) projects in Georgia, in addition to Russia's direct military or "soft" intervention, will be hindered by the Coronavirus pandemic. Soon, it will be necessary to build gas-liquidation terminals in our Black Sea ports to transport Caspian gas by liquid tankers in the form of liquefied petroleum gas (LNG), which will no longer be physically utilized into the EU's SGC pipes. However, the pandemic of the new Coronavirus may contradict the above-mentioned goals of Georgia and the European Union. Supporters of the pipelines have strong anti-epidemiologists’ argument which is very simple - long-term gas contracts based on a pipeline trade, when LNG gas "Spot" trade comparative advantage is that the gas supplier and the gas consumer for decades do not meet each other, they have no social contacts. However, the "Spot" trade requires frequent contacts with maritime transport gas "supply chain" and periodic changes in that supply chains. The future transfer of Azerbaijani gas via Georgia and Turkey to the Nakhchivan Autonomous Republic according to signed on February 25, 2020 memorandum of understanding between Azerbaijan and Turkey, evidences this. *Keywords:* Coronavirus, South Gas Corridor, SWAP Contract, LNG Liquid Gas, Spot agreement, Kars-Igdir-Nakhchivan Railway,Baku-Nakhchivan Gas Pipeline.