Gas dispute could delay Shahdaniz Phase 2 - analysts
Production of gas may fall behind schedule in Phase
2 of the project on tapping Azerbaijan`s major Shahdaniz field in
the Caspian Sea for worldwide distribution, analysts of the
Business New Europe (BNE) portal have concluded.
Azerbaijan is exporting gas being extracted as part of Phase 1 of the project to Turkey, Georgia and Greece, while Phase 2 envisions transporting gas to other European countries.
The BNE experts explained the expected delay was due to the ongoing Turkish-Azerbaijani gas transit dispute.
Turkey is unwilling to act as a transit state for the exports of Shahdaniz gas during Phase 2. Ankara is looking to buy Azerbaijani gas and then sell it to European countries for a high price, but Baku disagrees with the proposal. Moreover, Turkey is anxious to acquire 15% of Shahdaniz gas to be transported via the Nabucco pipeline for domestic consumption, which the project consortium members have called unacceptable.
The Nabucco pipeline will pump 30 billion cubic meters of Turkmen and Azerbaijani gas per year to European markets through Azerbaijan and Turkey.
Considering all the issues involved, BNE experts predict that the commissioning of Nabucco may not take place until after 2014, although 2013 is often cited as the anticipated deadline for putting the conduit into operation.
Annual output is predicted to reach 14 billion cubic meters of gas, of which 11bn cu. m. are earmarked for exports during the second stage of the Shahdaniz project.
Shahdaniz began production in 2006. The field holds estimated reserves of 2 trillion cubic meters of gas, according to official figures.
BNE is the magazine covering business, economics, finance and politics in the new markets of central, eastern and southeast Europe.
Azerbaijan is exporting gas being extracted as part of Phase 1 of the project to Turkey, Georgia and Greece, while Phase 2 envisions transporting gas to other European countries.
The BNE experts explained the expected delay was due to the ongoing Turkish-Azerbaijani gas transit dispute.
Turkey is unwilling to act as a transit state for the exports of Shahdaniz gas during Phase 2. Ankara is looking to buy Azerbaijani gas and then sell it to European countries for a high price, but Baku disagrees with the proposal. Moreover, Turkey is anxious to acquire 15% of Shahdaniz gas to be transported via the Nabucco pipeline for domestic consumption, which the project consortium members have called unacceptable.
The Nabucco pipeline will pump 30 billion cubic meters of Turkmen and Azerbaijani gas per year to European markets through Azerbaijan and Turkey.
Considering all the issues involved, BNE experts predict that the commissioning of Nabucco may not take place until after 2014, although 2013 is often cited as the anticipated deadline for putting the conduit into operation.
Annual output is predicted to reach 14 billion cubic meters of gas, of which 11bn cu. m. are earmarked for exports during the second stage of the Shahdaniz project.
Shahdaniz began production in 2006. The field holds estimated reserves of 2 trillion cubic meters of gas, according to official figures.
BNE is the magazine covering business, economics, finance and politics in the new markets of central, eastern and southeast Europe.
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