Azernews.Az

BAKU – Azerbaijan could export its gas to European markets by routes other than the Nabucco pipeline that "offer better conditions", head of the state energy firm Socar has said.

"Anything can happen, there are a lot of projects and we can’t set any of them aside," Rovnag Abdullayev said. "Along with other routes, the Nabucco project participants are deliberating on their terms and proposals. We will choose from among those [proposals]."

Azerbaijan has begun selecting a route for the supply of gas to be produced during the second stage of developing Shahdaniz, the country’s largest gas field in the Caspian Sea.

According to projections, production will be brought up to 25 billion cubic meters per year under the second stage of Shahdaniz development, which is expected to produce first gas in 2017. The Shahdaniz field holds estimated reserves of 1.2 trillion cubic meters of gas.

Turkish Energy Minister Taner Yildiz has said the Nabucco pipeline consortium will work to receive "a specific reply" from potential supplier Azerbaijan on the country's participation in the project.

"If Azerbaijan's response is negative, we will shift to contacts with Turkmenistan, Iraq and Iran. This project is of great importance both for us and for Europe. Therefore, we cannot waste time and will resort to all options available to implement Nabucco."

The 3,300-kilometer Nabucco pipeline will carry up to 31 billion cubic meters a year of gas from the Caspian region and the Middle East across Azerbaijan, Georgia and Turkey into southeast Europe and onwards to an Austrian trading hub, bypassing Russia. According to the pipeline consortium, construction is due to start in 2013 and operations in 2017.

Reports say projected investment in the 7.9 billion euro pipeline has been revised up to 12-15 billion euros.

The project's participants include the Austrian OMV, Hungarian MOL, Bulgarian Bulgargaz, Romanian Transgaz, Turkish Botas and German RWE.

Azerbaijan, Turkmenistan and Iraq are potential suppliers for the Nabucco pipeline.

Support agreements

The five countries to be crossed by the Nabucco gas pipeline will throw their weight behind the European Union-backed project on June 6 by signing agreements with the pipeline consortium, Minister Yildiz was quoted by CNN Turk TV channel as saying.

He said the Nabucco Project Support Agreements will be signed by relevant ministries of the transit countries - Austria, Bulgaria, Hungary, Romania and Turkey - with Nabucco Gas Pipeline International in the Turkish town of Kayseri.

According to Yildiz, Turkey has been ready to sign the agreements since last year, but the signing has been postponed on a request from Hungary due to the change of power in the country.

Nabucco communications expert Gabriele Egartner said the agreements "constitute an important support of the states vis-a-vis the project" in addition to the intergovernmental agreement on the Nabucco project.

"The Project Support Agreements set out the practical aspects and standards for the construction and for the long term operation of the pipeline in the respective countries," she said.