Nabucco hinges on Azeri-Turkish gas price accord: US official
A US official
has urged Azerbaijan and Turkey to agree on the price of gas to be
delivered to European markets through the Nabucco pipeline, warning
that energy companies will otherwise seek alternate options.
Turkish news agencies quoted US Special Envoy for Eurasian Energy, Richard Morningstar, as saying that the issue of finding sources of fuel for the Western-backed pipeline remains on the agenda.
"It is crystal clear that first gas will come from Azerbaijan," Morningstar told the European Policy Center think-tank. "But there is an issue that needs to be resolved straight away here. Why can’t Turkey and Azerbaijan agree upon the price of gas and its transit? We strongly encourage both countries to come to an agreement, because they have to agree to ensure further reliance on Nabucco and the confidence of companies joining the project. In our opinion, they will, but they are moving slowly. In my view, both countries have to keep in mind that this agreement meets their strategic interests."
According to Morningstar, if Azerbaijan and Turkey fail to reach agreement, energy companies and participating countries will move to consider other options. "These alternatives could be delivering liquid and compressed gas to Europe across the Black Sea via White Stream. All options should and will be worked on. But the priority issue is trying to reach an Azerbaijan-Turkey accord. This will turn Turkey into a very powerful transit state for transporting Caucasus and Central Asian gas to Europe," said Morningstar.
He noted that other potential suppliers for Nabucco are Turkmenistan and Iraq, adding that Washington does not favor, however, Iran’s becoming part of the Southern Corridor.
Morningstar also said the corridor, which crosses Turkey, and the Nabucco project are vital for Europe’s energy security and diversification of its energy supplies.
The 3,300-kilometer Nabucco pipeline, which will run from eastern Turkey to the Austrian capital Vienna, is expected to come online in 2014. The conduit will carry 31 billion cubic meters of gas annually, when fully operational.*
Turkish news agencies quoted US Special Envoy for Eurasian Energy, Richard Morningstar, as saying that the issue of finding sources of fuel for the Western-backed pipeline remains on the agenda.
"It is crystal clear that first gas will come from Azerbaijan," Morningstar told the European Policy Center think-tank. "But there is an issue that needs to be resolved straight away here. Why can’t Turkey and Azerbaijan agree upon the price of gas and its transit? We strongly encourage both countries to come to an agreement, because they have to agree to ensure further reliance on Nabucco and the confidence of companies joining the project. In our opinion, they will, but they are moving slowly. In my view, both countries have to keep in mind that this agreement meets their strategic interests."
According to Morningstar, if Azerbaijan and Turkey fail to reach agreement, energy companies and participating countries will move to consider other options. "These alternatives could be delivering liquid and compressed gas to Europe across the Black Sea via White Stream. All options should and will be worked on. But the priority issue is trying to reach an Azerbaijan-Turkey accord. This will turn Turkey into a very powerful transit state for transporting Caucasus and Central Asian gas to Europe," said Morningstar.
He noted that other potential suppliers for Nabucco are Turkmenistan and Iraq, adding that Washington does not favor, however, Iran’s becoming part of the Southern Corridor.
Morningstar also said the corridor, which crosses Turkey, and the Nabucco project are vital for Europe’s energy security and diversification of its energy supplies.
The 3,300-kilometer Nabucco pipeline, which will run from eastern Turkey to the Austrian capital Vienna, is expected to come online in 2014. The conduit will carry 31 billion cubic meters of gas annually, when fully operational.*
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