Georgia to Renegotiate Azerbaijan Gas Deal Expiring in 2026

Georgia's Prime Minister, Irakli Kobakhidze, announced that the country's current agreement with Azerbaijan for the supply of an additional 0.5 billion cubic meters of natural gas per year will expire at the end of 2026, The Caspian Post reports citing Georgia Today.

The government intends to negotiate updated terms before the contract concludes.

Kobakhidze emphasized that discussions with Azerbaijan will be conducted in a “constructive and friendly manner,” noting that it is too early to discuss the outcome but expressing hope for an appropriate agreement.

Currently, Georgia receives Azerbaijani gas under two arrangements: an ‘optional’ contract, which allows the purchase of up to 5% of gas transported from Azerbaijan to Turkey at a preferential price and a fixed additional supply contract guaranteeing 500 million cubic meters per year, regardless of total pipeline volume.

Georgia’s annual gas consumption is around 3 billion cubic meters. In 2024, the country imported 2.3 billion cubic meters from Azerbaijan while gas imports from Russia rose to 788 million cubic meters.