TBILISI, October 3 – Azerbaijan’s state oil company SOCAR is expanding its fuel terminal on Georgia’s Black Sea coast, a move that will strengthen the energy link from the Caspian to Europe.
SOCAR’s Kulevi terminal, which has operated since 2008, has submitted environmental documents to Georgian authorities for the addition of four new cylindrical steel tanks, each with a capacity of 20,000 cubic meters. The expansion will raise the terminal’s total storage volume from 402,000 to 482,000 cubic meters.
The project also includes a dual-track railway overpass to speed the transfer of petroleum products from rail tankers. Once permits are cleared, construction can begin.
The Kulevi terminal currently handles up to 10 million tons of oil products annually. In 2023, the company dredged the seabed to accommodate larger vessels, increasing shipments by 11% and revenue by 30 million lari, to 105 million lari (about USD 39 million). Net profit reached 52.5 million lari, while assets stood at 317 million lari.
The upgrade highlights Georgia’s role as a transport corridor linking the Caspian basin with global markets. The Black Sea coast has become increasingly strategic as Europe seeks alternatives to Russian energy. SOCAR, which dominates Azerbaijan’s oil and gas sector, already plays a major role in supplying regional pipelines such as the Baku-Tbilisi-Ceyhan route.
Adding to the compounding Middle Corridor logistics trend, just next door a Georgian company, Black Sea Petroleum, is building the country’s first full-cycle oil refinery, a USD 600 million investment. Once operational, the refinery is expected to source part of its crude through the Kulevi terminal.
