Georgia is set to enhance its position in the regional energy market through the development of a new oil refinery, according to Parviz Mammadov, General Partner of Energo Trade for Central Asia and the Caucasus. Mammadov shared his insights during the Caspian and Central Asian Oil Trade and Logistics Forum in Baku, Azerbaijan.

Mammadov emphasized that Georgia's geographical advantage, coupled with its access to Black Sea ports, greatly strengthens the country's competitiveness in the global energy sector. He explained that while the nation imports oil products in US dollars, its market remains more insulated from the impact of currency fluctuations, even though domestic fuel prices are still influenced by exchange rate changes.

“The construction of this refinery and the improvements in Georgia’s logistical and refining capabilities will be key to bolstering the country's energy independence,” Mammadov said.

The new refinery will be located in the Supsa region, near the Kulevi terminal, and will be Georgia’s first large-scale, modern oil refining facility. The refinery will have an initial throughput capacity of 1.1 million tons annually, with plans for future expansion. This development is expected to bring significant changes to Georgia's energy market and fuel pricing dynamics.

“The refinery launch is expected by the end of this year, though initial projections suggested an earlier start. Once operational, we will begin to witness substantial shifts in the structure of fuel supply and pricing across the country,” Mammadov explained.

Georgia's fuel consumption is considerable, with the country annually consuming around 650,000–670,000 tons of gasoline, 620,000–650,000 tons of diesel, and up to 150,000 tons of aviation kerosene. Once the refinery is up and running, the country is expected to significantly reduce its reliance on imported oil products, shifting toward more domestic refining to meet these demands.

The new refinery marks a crucial development for Georgia as it aims to increase energy self-sufficiency, enhance local infrastructure, and position itself as a stronger player in the regional oil market. The move is poised to reshape Georgia’s energy landscape by bolstering its refining capacity and improving its market dynamics in the years to come.

Originally reported by Nursultan Ziyadov in Trend.