Azernews.Az

By Aynur Jafarova

The Shah Deniz Consortium has made the final investment decision (FID) on the second stage of offshore gas condensate field development. The ceremony of signing of the document kicked off in Baku on December 17.

Addressing the event European Commissioner for Energy Gunther Oettinger said the FID on the Shah Deniz-2 project will pave the way for further diversification of European gas sources.

"And this will strengthen the links between the Caucasus and the EU. It is an energy link, but it is also an industrial link and cultural link as well," Oettinger said.

He also said today's decisions are historic.

"The decision to go forward with the Shah Deniz-2, the decision to upgrade the Southern Caucasus pipeline and the decision to build the Trans Anatolian pipeline are very welcome in Europe. It is not the first time when energy is the basis of long lasting relations between nations," Oettinger said.

The development of the Southern Gas Corridor is an excellent example of cooperation between governments and business. And both can profit, he said.

Oettinger went on to note that now gas supply companies have the necessary contracts to underpin the investments needed.

He said he was pleased to hear plans about the cooperation between Azerbaijan and Albania, Bosnia and Herzegovina, Croatia, Montenegro in implementing the Southern gas Corridor in South east Europe, as well as Hungary, or Romania or Austria.

"What we are witnessing here today is meant as a beginning of a bigger project," Oettinger stressed.

In his remarks Bulgarian Prime Minister Plamen Oresharski said the Southern Gas Corridor opens new possibility for Bulgaria.

"The ceremony marks the start of construction of the South gas corridor which opens new possibility for my country. TAP will pass close to Bulgaria which is also a good opportunity for diversification of gas supply," Oresharski said.

Bulgarian Prime Minister also thanked Azerbaijani President Ilham Aliyev for the invitation to attend this ceremony and wish him successful work of the pipeline.

Georgian Prime Minister Irakli Garibashvili also made speech at the event. He said considering hydrocarbon reserves, Azerbaijan has become a very important country in terms of addressing energy security needs all of the countries in the region and the EU.

"Georgia's location makes the country a transportation hub for the South Caucasus region and the key link together with Turkey as the shortest transport route between Europe and Caspian region. I am convinced that this is just a start of long term and sustainable multilateral energy cooperation," Garibashvili said.

Garibashvili also said next step should be targeted to the advancements of the Trans Caspian development and intensifying EU talks with other countries of the Caspian region.

"Recent development and common experience in the region during the last 20 years clearly demonstrates how it is important to create conditions necessary for effective cooperation and diversification of transport routes and hydrocarbon reserves," Garibashvili said.

The Georgian PM said the success of large transportation projects planned within the South Energy corridor will be secured only by balance in the interests of consumers, transit and producer countries.

The implementation of such important projects like Shah Deniz 2 will definitely bring stability, economic growth and prosperity in the participant states, promote the development of region's market, increase flexibility and energy security.

"The project plays decisive role in creating common energy policy for mutual advancement and success," the Georgian PM said.

Speaking at the event British Foreign Secretary William Hague said the Shah Deniz-2 development will enhance the energy security of Europe.

"This project is important for the following reasons," he said. "It will increase the energy security of Europe, strengthen competition in the European gas market and affect the gas price, support the fight against climate change, bring profits to the project participants and create more than 30,000 new jobs.

"I am proud that British companies led by BP are involved in this project," he said.

"The implementation of the second phase of the Shah Deniz gas condensate field development project will strengthen Azerbaijani- British relations and the sides must examine ways of enhancing bilateral cooperation," he said.

In his remarks Turkish Energy and Natural Resources Minister Taner Yildiz said his country intends to increase its stake in the Trans-Anatolian pipeline (TANAP) to 30 percent.

"An increase in Turkey's share in the TANAP project is important for the country," he said.

The minister also noted these projects being implemented in the region are extremely important.

Speaking at the event Italian Foreign Minister Emma Bonino said the signing of the final investment decision launches a new generation of investments in the gas field.

"I am sure that this will strengthen our political and economic relation and in this framework my presence in Baku testifies to our determination to deepen, widen and enrich our bilateral relations," she said.

This event, according to Bonino, is a result of long standing cooperation between the government of Azerbaijan and Italy, Shah Deniz consortium, SOCAR and European energy companies, involved in the project.

The TAP project will be an important contribution to Italian gas demands and to its purpose to become an energy hub for the Southern Energy Corridor and for the Mediterranean region, she said.

"One of the major goals of our national energy strategy is to improve our security of supply especially in the gas sector and reduce dependence on imports," Bonino noted.

She believes the Italian economy will continue to increase its gas consumption over next few decades.

"So for Italy it is of great importance to have regular and affordable gas imports from traditional partners but also from new emerging producers," Bonino said.

She believes that a key factor for greater energy security in Italy and Europe is the need to diversify their sources and transit routes and the TAP project represents for both Italy and Europe a way to this target.

During the EU presidency in the second semester of 2014, Italy will pay special attention to the European energy security issue and to development of the European energy strategic infrastructure, Bonino said.

In his remarks Albanian Prime Minister Edi Rama said the implementation of TAP will pave the way for new projects such as the Ionian-Adriatic Pipeline (IAP).

"TAP is a huge project, but it will be more enormous when it opens a way for new and innovative joint projects such as the unification of Albania, Croatia, Bosnia and Herzegovina and Montenegro in a joint effort to promote the IAP, which will deliver gas to new markets from the Southern Gas Corridor and its reverse flow," Rama said.

"TAP can be (and we aim to do this with the help of Azerbaijan and our strategic partner Turkey) a source of development not only for Albania , but also for Croatia, Macedonia , Montenegro, and all the other countries of South -Eastern Europe - a region that joins the new era of peace and cooperation," Rama said.

It is not only a chance for the development of Albania's national market that demands support and special contribution of Azerbaijan. Albania should also become a "promoter" of gasification for many countries in the region which still do not have such markets and necessary infrastructure, according to Rama.

"For Albania, TAP is not only a set of opportunities, but also a set of obligations. Our government will present necessary human and material resources, institutional framework for guaranteeing the successful work of TAP project," Rama said.