Georgia and Azerbaijan Strengthen Their Energy Partnership
Georgia and Azerbaijan have signed a comprehensive package of energy and infrastructure agreements, thereby further expanding their cooperation along the so-called Middle Corridor. The goal is to strengthen Georgia’s role as a regional transit hub between Asia and Europe.
The agreements were concluded on May 18 during a meeting between President Ilham Aliyev and Georgian Prime Minister Irakli Kobakhidze in Baku. They cover, among other things, natural gas supply, electricity imports and transit, the recommissioning of the Baku–Tbilisi–Supsa pipeline, and renovation work on the Baku–Tbilisi–Kars railway line.
Focus on the Middle Corridor
The new agreements strengthen Azerbaijan’s position as Georgia’s most important energy partner. At the same time, both countries are pushing forward with the expansion of the so-called Middle Corridor—a trans-Caspian trade route connecting China and Central Asia with Europe via the South Caucasus and Turkey. The route is seen as an alternative to Russian transit routes.
Kobachidze described the electricity import and transit agreement in particular as “very important.” According to the prime minister, the pipeline agreement between Baku, Tbilisi, and Supsa is expected to secure Georgia annual transit revenues in the tens of millions in the future.
Georgian Foreign Minister Maka Botorishvili also emphasized Azerbaijan’s strategic importance for the development of the Middle Corridor.
“Especially when it comes to future projects like the Middle Corridor, Azerbaijan is an indispensable strategic partner for us,” she told local media. Fully tapping into Georgia’s transit potential is among the top priorities of the government in Tbilisi.
Baku–Tbilisi–Supsa Pipeline to Resume Operations
Particular attention is being paid to the restart of the Baku–Tbilisi–Supsa pipeline. The pipeline connects Azerbaijani oil fields with the Georgian Black Sea coast and has been out of service for several years.
Georgian Economy Minister Mariam Kvirivishvili stated that, following negotiations, the government had decided to resume operations of the pipeline in cooperation with the Azerbaijani state oil company SOCAR.
The pipeline has a capacity of approximately 100,000 barrels per day.
Expansion of the Baku–Tbilisi–Kars railway line
In addition, both sides signed a protocol on the modernization and expansion of the Marabda–Kartsakhi railway line on the Turkish border. The line is part of the international Baku–Tbilisi–Kars railway project, which has connected the three countries since 2017.
The railway line is becoming increasingly important as more and more companies are restructuring their supply chains and avoiding Russian transit routes. The Georgian section between Marabda and Kartsakhi, in particular, has so far been considered a bottleneck, and its modernization is crucial for increasing transport capacity.
Georgia remains dependent on energy imports
Since Georgia has virtually no hydrocarbon reserves of its own, the country remains heavily dependent on energy imports. Azerbaijan is already the country’s most important gas supplier.
With the new agreements, this cooperation is now expanding more significantly into the electricity sector. At the same time, Georgia is securing additional revenue from transit fees and strengthening its economic role as a central transit route between Europe and Asia.
