Turkey, Georgia and Azerbaijan to hold more talks on sharing of Caspian gas

Georgia's energy minister said on Sunday that Turkey had agreed to give up some of its share from the giant Caspian gas field to Georgia, allowing the small Caucasus nation to reduce its dependence on expensive Russian gas. Nika Gilauri said Turkey had agreed to transfer to Georgia 800 million cubic meters of the Shah Deniz natural gas it was entitled to.

But Turkish Energy Minister Hilmi Guler said Azerbaijan - which owns the gas - as well as the companies involves, had a say on the issue of the transfer of the gas. All three countries' energy ministers would therefore meet in Istanbul "within the week" to discuss the issue, he told reporters.

"It was announced that Georgia needed 800 million cubic meters. We made a political decision and pronounced this figure," Guler said. "However, such a deal ... requires separate company-to-company agreements as well as government-to-government agreements and therefore all three countries involved must reach an agreement."

Georgia has faced a doubling of the price it pays for Russian natural gas and is seeking alternative sources of supply.

Turkey has been in talks on reallocating quotas from Shah Deniz with both Georgia and Azerbaijan, former Soviet republics, which are eager to avoid importing expensive Russian gas.

Energy supplies from Azerbaijan's Caspian fields are playing an increasingly important role in the region, as Russia raises natural gas prices. The Associated Press

/The International Herald Tribune/