Gas deposit of 40 billion cubic meters is discovered is Georgia

A company Frontera Resources (USA)  has revealed natural gas reserves in the amount of 42 billion cubic meters  in the Mtzare Heavy deposits (Eastern Georgia.) "It was established that gas reserves in this field total  42 billion cubic meters, which will provide energy independence for Georgia,"  said on Friday President of the  Frontera Resources, Steve Nikandros, at the  ceremony  of starting  deliveries of gas from the field to the gas network of the country; $ 400 million were invested to the project. According to the executive director of Frontera  Eastern Georgia,  George Zambakhidze, more than 75,000 cubic meters of gas will be produced from the field.

Georgia consumes about 2,000 cubic meters of gas. Almost half of this amount, the country receives from Azerbaijan at a discounted price.

For  Russian gas transit Georgia receives 10% of its total deliveries to Armenia.

Gas from Azerbaijan to Georgia comes under two contracts -  on the first contract 500 million cubic meters  it is received at  $189. This is  so-called "social gas", intended for the public.

Under the second contract comes commercial gas of 400 million cubic meters, priced at $ 240 per 1,000 cubic meters. -02D-