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West, Russia still divided on trans-Caspian pipeline

11 June 2011 09:30 (UTC+04:00)
West, Russia still divided on trans-Caspian pipeline

MOSCOW – Russia is keen on a pipeline project that would be an alternative to the European Union and U.S.-backed trans-Caspian pipeline linking Turkmenistan and Azerbaijan to secure gas supplies for Europe.

Russian Ambassador in Baku Vladimir Dorokhin has affirmed Moscow’s stance, saying that the draft convention on the legal status of the resource-rich Caspian Sea, an issue that has been unresolved for over a decade, included a clause on building pipelines across the Caspian.

"Any pipeline to be built along the bottom of the Caspian Sea has to be agreed with Russia and the other four littoral states. This was reflected in the Caspian status convention," Dorokhin said, commenting on the pipeline project being discussed by Caspian littoral states Turkmenistan with Azerbaijan.

"Our position will remain unchanged. And we will defend it under any circumstances and in any way possible," Dorokhin said.

The trans-Caspian pipeline could eventually provide a major boost to the European Nabucco project, a natural gas route by-passing Russia to deliver gas to Europe from other producers.

While some experts doubt that the trans-Caspian project could be implemented without Moscow’s approval, representatives of the companies included in the consortium on the Nabucco pipeline project have a contrary opinion. Austrian OMV’s official Michael-Dieter Ulbrich says the ongoing talks between Turkmenistan and Azerbaijan on the planned trans-Caspian conduit are quite reassuring. "This could pave the way for an agreement between the two governments. This project is commercially viable."

Vitali Beylarbayov of Azerbaijan's state energy firm Socar also hopes that the trans-Caspian pipeline will materialize. According to him, it is a key project involving the regional countries’ governments and a number of major companies.

Beylarbayov said the Azerbaijani and Turkmen governments have already stated their support for the project, and relevant legal documentation is in the making.

"For the project to go ahead, the entire environmental impact is to be studied and its feasibility study developed. The feasibility study is scheduled for completion this year. Only afterwards can a decision be made on construction operations.

"In any case, the preparation of documents will take at least six months, while a decision on the project implementation is to be passed over the following one to three years. Otherwise, a problem will emerge, because the infrastructure created in Azerbaijan over this period will be slated only for Azerbaijani gas," Beylarbayov said.

The Socar official said Russia would not be able to hamper the trans-Caspian project.

"That’s what I think. Besides, talks on the trans-Caspian project will not be held with Russia, because it involves work and consultations carried out by private companies.

"This project will not cause any confrontation. Moreover, Turkmen officials stated in Baku [at the Caspian summit] in November 2010 that this is a bilateral project, and if the two countries implement it, it should be given some thought."

Turkmenistan and Azerbaijan are potential suppliers for the Western-backed Nabucco pipeline, which seeks to carry up to 31 billion cubic meters a year of gas 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. The project's participants include the Austrian OMV, Hungarian MOL, Bulgarian Bulgargaz, Romanian Transgaz, Turkish Botas and German RWE.

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