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Azerbaijan launches new gas deliveries to Georgia

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BAKU, May 30 (RIA Novosti) - Azerbaijan started pumping natural gas to Georgia under new contract at $120 per 1,000 cubic meters, the head of the gas firm Azerigaz said Wednesday.

It is the second contract on gas supplies from the Caspian country to Georgia this year. Russia was the only supplier for the South Caucasus state last year until Moscow raised the price from $110 to $235 per 1,000 cubic meters.

Alikhan Melikov said that under a contract signed with the country, gas will be delivered to Georgia for a month.

"Azerbaijan is supposed to deliver 40-41 million cubic meters of gas over this period," Melikov said.

Azerbaijan delivered 106 million cubic meters of gas to Georgia in January-March at the same price.

"We have both the technical capabilities and the reserves to continue gas deliveries to Georgia in the future," Melikov said. "When the current contract expires in a month, the parties will hold talks again on [new] gas deliveries."

Azerbaijan's annual domestic gas consumption totals 15-16 billion cubic meters. The country currently produces around 6.5 billion cubic meters of natural gas per year.

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