Natural Gas in Georgia`s Energy Balance
Khatuna Chomakhidze, Candidate of economic Science, Lali Chubinidze, Candidate of Economic Science
Role and importance of the natural gas is huge in social life. It presents to be mean of producing as well as the issue of consumption.
It possessing huge role in resolving of social problems, people`s condition improvement, social-economy and energy security of the country supplement, financial and political stability, ecology clearness protection.
Natural gas is one of the top in all counties energy balance and presents to be one of the basic resources. Consumption includes as gross expanses, as well as separate fields of economy of its utilization, according to sectors. The resources first of all mean it`s importing issue.
Natural gas appeared in Georgia` s energy balance science 1960 and during that time the country used 7301,8 thousand tones of conditional fuel (CF) of fuel-energy resources (FER), including 540, 5 thousand tones (7,4%) of natural gas. The growth trend faces next years and approached 34,3% for the end of Soviet regime, 1990. The number is approximately 6,5 million tones, in absolute measures.
After Soviet regime ruining, fuel-energy resources production and importing in Georgia sharply reduced, Import of natural gas almost cut, and the energy balance created most deficit.
Georgia`s Statistic State Department first attempt creating energy balance of the country, after Georgia stepped on the road of independence and democracy authority building, could be realized just in 2001. The base was 2001-2002 selected researches information on internal economics and energy consumption, with the support of “TACIS”.
According to the research dates, Georgia totally used 148615 energy (including 39830 natural gas) while 2001. Despite, liquid gas consumption included 1,6 % of general utilization. Basic results of provided works concerning natural gas are focused in table No:1.
According to table No:1, Georgia expended 1,157 billion kb. Meters of natural gas, 7,6% used by enterprises, and 38,1% suffered transformation for new sorts of energy producing (for instance, electricity), a little less 35,1% used for final utilization, including 7,5% used by enterprise sector and 1,1% vehicle. Big amount expended for non- energy goals – 8,5% and much more (18%) for other fields – internal economics, social- administrative and commercial organizations, agriculture and other. According to provided research dates, 82,5 of natural gas, used by Georgia was imported, nut just 3,5% was locally produced. 14% of resources used for reserves creating.
Table No:1 also faces that natural gas looses include 222,3 million kb meters, or 7646 tarragon, what is 19,2% of total consumption. Such big amount of natural gas lose causes are supplement network bad condition, not entire accounting of used gas, not installed meters or their incorrectness, gas “plundering” and ect;
Energy balance of 2001 faces that Georgia requires more gas for utilization then for energy producing. As it had been already noted, gas total consumption includes 25,8%, and its use for producing includes 1,44%.
Oil products occupy the second place. 46,1% (441,2 million kb. Meters) of the imported natural gas used for energy transformation issue, and 9,2% (88,1 million kb. Meters) in industry. Unfortunately, natural gas loses is nearly twice more relatively with power loses. We see big amount of natural gas lost in gas pip- lines and power transferring networks.
Natural gas consumption by enterprises included 86,6 million kb meter gas, including: 10,3 million kb meters (11,9%) for food, drinks and tobacco producing, 326 kb. Meters (0,4%) for cloth and leather producing, 1,2 million kb. meters (1,4%) for chemical and oil-chemical producing, 68,4 million kb meters (79%) for non mineral and mineral production producing, and ect;
Vehicle sector consumption totally included 13,2 million kb meters of natural gas, including 8,4 million kb meters (63,6%) for road transport and 4,8 million kb meters (36,4%) for pipe-lines. Non-energy goals consumption includes 98,5 million kb meters, 8,5% of whole consumption.
Other sectors of economy consumption include 208,1 million kb meters or 18% of gross consumption. It separates on following important fields: internal economics (77,8%), social-administrative and commercial organizations (accordingly 0.65 and 14,8%).
It`s obvious that the dates are old and do not meet today` srequirements. It`s enough to remember that gas supplement 1,57 times increased in Georgia during 2000-2006 and approached 1881 million kb meters for the end of the period, but the number approaching to 2,0 billion is expected in 2007.
Total energy balance was created once in five years during Soviet regime. But it had not created after Georgia reached the independence, what is important shortage of the Department of Statistic. The department should restore practice of energy balance creating and provide t yearly.
One of such sort works is monograph “Energy balance of Georgia” released by the Technical University of Georgia. It includes analyze of Georgia`s fuel-energy resources, including natural gas producing –consumption total statements based on expert estimation; According to the research, natural gas participation in fuel-energy balance is following in Georgia (check table No:2)
According to Table No:2, natural gas consumption in Georgia increased with 58,6%, while other sort of energy resources consumption rose rather slowly (26,0%). All these provided background for natural gas share increase in fuel-energy balance with 9 percentage points (up to 43,9% from 34,9%).
Huge consumer of natural gas is heavy industry (energy, metallurgy, chemistry), but while today` s condition we can name just the first one – energy. So the most affective seasons of gas utilization are autumn and winter. According to dates, natural gas resource balance in 2005 included 1174 tones of conditional fuel (1455,7 million kb meters), including 12 tones of conditional fuels consumption for local production, but the basic amount – 185 thousand tones of conditional fuels used for energy transformation. Industry share included 143 tones, (13,3% of total consumption). Population consumption included 196 thousand tones of conditional fuel.
Trend of natural gas consumption is focused in Table No:3, created according to expert estimations. According to the table, every region of Georgia faces gas consumption increasing trend, expect Samegrelo region, having problems with gas supplement during 2002-2005, natural gas was supplied a little bit later to Guria and Ajara regions.
According to 2005 dates, natural gas consumption seasonal condition is faced. To say exactly, the I quarter of 2005 included 44,5% of yearly consumption, but the IV quarter 29%, what appoints on deep seasonally. The table faces larges consumer – Kvemo Kartli region, of the natural gas, including power generation tools (Gardabali), and the second biggest gas consumer is Tbilisi, consumption of which increased up to 422,3 million kb meters from 180,4 kb meters in 2001-2005 (2,34 times increase). Gas consumption in other regions is relatively low. Big cities and regions face fast increase in gas consumption issue. According to 2006 dates, Tbilisi consumption included 0,5 billion kb meters (main representative “Khaztransgas Tbilisi”), Kutaisi (“Kutaisgas” city facing newly the same condition, it already approached to 21 million kb meters consumption, Rustavi (“Rustavgas” and “Rustavcementi”) – 100 millions, Ajara (“Ajara Natural Gas”) – 4 million, Gori “Gorigas”) – 13 million and ect. Unfortunately, natural gas network development is strictly limited, and several parts of the regions are left without natural gas. The lowest levels of gasification are faces in west Georgia, Meskhet-Javakheti region, Abkhazia has no gas supplement. As Georgia has not its own gas yet, the country entirely dependent on imported natural gas. So, gas supplant diversification, new routs spearing new – techs inoculation bearing huge importance concerning the issue.
Provided analyze clearly faces that the natural gas has a strategic importance in infrastructure rehabilitation. Economy development rate as well as domestic sector is hugely depended on gasification. So, just one can be said as a conclusion, despite of several problems (conjunctive, political, social and ect;) existence while natural gas supplement, its consumption widening has not way back.