Geographic Feature: Georgia
Wednesday, August 6, 2026. GEORGIA: THE CAUCASUS ENERGY CORRIDOR. Georgia sits at the crossroads of Caspian energy flows. Two critical pipelines: Baku-Tbilisi-Ceyhan (BTC) oil pipeline and South Caucasus Pipeline (SCP) for gas. BTC: 1,768 km crude oil transit from Azerbaijan to Turkey. BP transferred operatorship to SOCAR effective July 1, 2026. Throughput declining: H1 2025 saw 13.9 million tons; early 2026 dropped 33% year-over-year. Caspian export dynamics tightening. SCP GAS PIPELINE: Shah Deniz consortium gas flows through Georgia to Turkey. Georgia receives transit fees plus 5% offtake and preferential purchases. Strategic leverage. GEORGIA'S IMPORTS: Total consumption 3.2 billion cubic meters. 2026 imports projected at 3.34 billion cubic meters. Azerbaijan dominates. Gazprom volumes surged 40.4% in 2025. Russia gaining ground. ELECTRICITY: 75-80% hydro. Gas-fired backup. EU Energy Community Treaty member since 2016. Pushing for underground storage and diversification. GEOPOLITICS: Georgia's transit role enhances leverage. But energy dependence on Russia and Azerbaijan shapes foreign policy. Black Sea access critical. US National Security Strategy shift in January 2026 reducing regional engagement. Georgia navigating between Russia, Azerbaijan, and Western alignment. THE PLAY: Georgia's transit corridor value is real. But import dependence on Russia creates vulnerability. Watch BTC throughput trends and Gazprom volumes. Energy security equals geopolitical positioning.
