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Poland sees Azerbaijan as `reliable and important` energy market player

18 July 2012 09:20 (UTC+04:00)
Poland sees Azerbaijan as `reliable and important` energy market player

Poland plans to discuss political, trade and energy issues with Azerbaijan, Polish Foreign Minister Radoslaw Sikorski said on the eve of his visit to Baku scheduled for July 17-18.

``The agenda of my first visit to Azerbaijan, which takes place in the year that we are celebrating the 20th anniversary of our diplomatic relations, covers both bilateral and EU-Azerbaijan political, trade and energy issues,`` he said in an interview with the Baku-based Trend news agency.

According to Sikorski, a host of regional issues is also to be discussed, especially in the context of the security and stability of the South Caucasus region.

``Since Azerbaijan is currently a [non-permanent] member of the UN Security Council, my visit provides an interesting opportunity to exchange views on major international issues,`` Sikorski said.

European energy market prospects

Sikorski said Azerbaijan is a reliable and important player on the global energy scene.

He expressed confidence that Azerbaijan`s decision on choosing the route for its gas supplies to Europe will stem from ``market-based due diligence``.

``This decision should ultimately take into account the gas market potential and opportunities in the perspective of the next 10-15 years,`` the minister said.

Currently, a consortium for the development of Azerbaijani gas condensate field Shah Deniz in the Caspian Sea is choosing a pipeline for transporting gas to Europe. The final decision on the route, with Trans Adriatic Pipeline project and Nabucco West being the only options, will be made in 2013.

Poland currently holds the presidency of the Visegrad Group which comprises countries that symbolize successful market transformation and offer huge business opportunities, Sikorski said.

The demand for natural gas in Central and Eastern Europe (Visegrad 4 + Bulgaria, Romania) could rise from 50 bcm to as high as 80 bcm in 2020, he stressed.

``Furthermore, within the North-South Corridor in Central and Eastern Europe, significant work has already been done to improve interconnectivity and develop key energy infrastructure. The first regional LNG terminal in Swinoujscie is under construction and will be operational in 2014. We also certainly hope to extract shale gas in Poland,`` Sikorski said.

According to him, this gives a clear picture of the strong potential for creating an attractive and efficient gas market in the region in the nearest future.

``Our region offers opportunities for long, stable and reliable investments in the gas sector. It is now and soon will be even more - a region for unique business perspectives,`` Sikorski said.

The minister also said he would like to invite his Azerbaijani colleagues to visit Poland and see it with their own eyes.

Karabakh conflict

Poland closely follows developments in the Armenia-Azerbaijan Nagorno Karabakh conflict and is concerned about the recent series of incidents on the troops` Line of Contact, Sikorski said.

``We support a peaceful solution to this protracted conflict that respects territorial integrity and other relevant rules of international law. Warsaw hopes that the basic principles worked out by the mediating OSCE Minsk Group will be implemented,`` the minister said.

According to him, once an agreement is reached, the EU is ready to engage actively in managing the post-conflict situation.

The conflict between Azerbaijan and Armenia emerged in 1988 when Armenia leveled territorial claims against Azerbaijan. Since a brutal war between the two South Caucasus countries in the early 1990s, Armenian armed forces have occupied 20 percent of the neighboring country`s territory, including the Nagorno Karabakh region and seven surrounding districts.

A fragile ceasefire was signed in 1994. The United States, Russia and France are brokering peace talks through the OSCE Minsk Group. The negotiations have been largely fruitless so far.

Eastern Partnership

Sikorski also said that thanks to the Eastern Partnership -- which aims to boost the EU`s cooperation with its ex-Soviet partners -- Azerbaijan and its South Caucasus neighbors started negotiations on their EU Association Agreements in 2010.

``We understand that each country moves at its own pace and while we are satisfied with the progress Azerbaijan has made, we encourage officials in Baku to continue their efforts to implement European standards, including in the area of human rights,`` he said.

He also expressed hope that once Azerbaijan joins the WTO, negotiations will start on the Deep and Comprehensive Free Trade Area, giving Azerbaijani business a chance to enter the Common Market.

Sikorski stressed that talks are underway on visa facilitation and readmission agreements, which started in March this year.

``They are the first step towards a visa-free regime, as agreed in the Declaration of the Warsaw Eastern Partnership Summit last year,`` he added.

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