Azernews.Az

BAKU – Talks between the Azerbaijani, Georgian and Romanian presidents and the Hungarian prime minister concluded in Baku Tuesday with the signing of an agreement on a project that will transport Azerbaijan’s liquefied gas to Europe through Georgia and Romania.

In the joint statement, the signatories threw their weight behind the Azerbaijan-Georgia-Romania Interconnector (AGRI) project and outlined key principles for implementing the ambitious project.

Azerbaijani President Ilham Aliyev told a news conference after the signing that Azerbaijan is interested in Europe’s energy security, which will open up broad opportunities for the resource-rich South Caucasus republic.

President Aliyev said "the balance of interests" of the sides involved was an important condition for the implementation of the AGRI project.

"We are making history here," Aliyev said. He noted that diversification of energy resources was a key element of energy security.

The Azerbaijani leader said his country currently has seven pipelines transporting its oil and gas through various routes.

The president said Azerbaijan has fully ensured its energy security.

"Energy security, which is an inseparable part of national security, is an important factor in the world today."

Aliyev said Azerbaijan is expected to produce 28 billion cubic meters of gas this year, with the country’s domestic demand being 10-11 billion cubic meters. The rest of gas is exported as well as pumped into storages, he said, adding that the current level of gas exports does not curb Azerbaijan’s participation in other projects.

Georgian President Mikheil Saakashvili said the AGRI project’s being joined not only by the regional countries but also European Union members was remarkable. He said Hungary’s participation would contribute to European energy security.

Romanian President Traian Basescu said the AGRI project paves the way for a successful implementation of the European Union’s Eastern Partnership program that aims to boost the bloc’s cooperation with the former Soviet republics. Moreover, AGRI will give an incentive to the cooperation between the Caspian littoral states and European countries.

"Hungary’s joining this project is an important element of its reliability," Basescu said, adding that the initiative is unique and does not lean on any political decision.

Hungary's Prime Minister Viktor Orban said his country will be fruitfully cooperating with Romania "so that this project would be justified on the European continent" and expressed confidence that AGRI would further the EU’s energy security.

Romania, Azerbaijan and Georgia signed a memorandum of understanding on the AGRI project in Bucharest on April 13. Azerbaijani gas will flow through a pipeline across the Caucasus to the Georgian port of Kulevi, where it will be liquefied, and shipped across the Black Sea to a regasification terminal at the Romanian port of Constanta. The gas will be further distributed across the EU via the Romanian gas grid.

In the future, pipelines are planned to link Constanta with Bulgaria and Hungary to export Azerbaijani gas to the EU.

Three options are on the agenda – supplying 2bn cubic meters of gas per year, 5bn cubic meters or 8bn cubic meters. Depending on the volume of supplies, investments in the project will vary from 1.2 billion euros to 4.5 billion euros. Final figures, including the bulk of supplies and the amount of investment, will be clear after the feasibility study has been developed.

Azerbaijan’s proven gas reserves exceed 2 trillion cubic meters. The country produces most of its gas from the giant Shahdaniz field in the Caspian Sea.