Canargo Energy proposes refining expansion in central Georgia

Canargo Energy Corp., Calgary, Monday announced an agreement with the Georgian government for CanArgo to formally progress with plans for a proposed 25,000-30,000 b/d refinery near Tbilisi, the Georgian capital. Canargo has an existing refinery with a capacity of 4,000 b/d. The refinery is 25 km east of Tbilisi.


By the OGJ Online Staff

HOUSTON, June 4 -- Canargo Energy Corp., Calgary, Monday announced an agreement with the Georgian government for CanArgo to formally progress with plans for a 25,000-30,000 b/d refinery near Tbilisi, the Georgian capital.

Canargo has an existing refinery with a capacity of 4,000 b/d. The refinery is 25 km east of Tbilisi. The Georgian parliament already is reviewing proposals that would increase operational margins by 18%.

Canargo has a chain of seven gasoline stations in Tbilisi with another 13 under construction. Additional retail site acquisitions are planned.

The expanded refining capacity is designed to supply light petroleum products in the Tbilisi and central Caucasus market and to build on Canargo's position as the only integrated oil company in Georgia.

Canargo expects the Georgian state oil company, Georgian Oil, and others to participate in the refining expansion project. Discussions are about to start multi-lateral agencies concerning project finance.

Meanwhile, Canargo has scheduled its annual meeting for Oslo on Thursday.

Canargo is an independent exploration and production company operating in Eastern Europe. Canargo's principal oil and gas operations are located in Georgia.

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