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Azerbaijan as only country transporting Caspian gas to Europe

23 May 2016 14:50 (UTC+04:00)
Azerbaijan as only country transporting Caspian gas to Europe

By Fatma Babayeva

Azerbaijan is the only country which will provide Europe with Caspian gas, which is perceived in the Old Continent as "Azerbaijani gas".

"Azerbaijan has become a symbol of the Caspian," Azerbaijani Energy Minister Natig Aliyev told ANS TV on May 22 after his recent participation at the groundbreaking ceremony of the Trans-Adriatic Pipeline (TAP).

The groundbreaking ceremony of TAP, an European leg of the Southern Gas Corridor, was held in Greece on May 17. The project has a geostrategic importance and will help Europe to diversify gas import routes and enhance energy security.

Azerbaijan is creating a new gas corridor which is not an ordinary pipeline. All natural gas extracted during the full-scale operation of Shah Deniz field will be transferred via this corridor.

Aliyev said that natural gas produced from the Absheron field can also be sent via the Southern Gas Corridor (SGC). In case of opening new gas fields as a result of exploration work carried out by the State Oil Company of Azerbaijan (SOCAR), the new gas volumes can be transported through the corridor as well, he added.

Aliyev also hailed other countries joining to the pipeline. "If other states like Turkmenistan and Iran intend to send their gas via Azerbaijan or join Trans Anatolian pipeline (TANAP), Azerbaijan has no objections for it."

Azerbaijan will create an opportunity by holding negotiations with the states who want to join the project and transport their gas to Europe by using the SGC, said Aliyev, stressing that Turkmen gas is the most real additional source for gas exports in the Western direction.

There are two pragmatic options. The first one is the construction of the Trans-Caspian pipeline. The second option is linking the platforms with subsea pipelines in the Caspian Sea, Aliyev explained.

However, several issues remain unsolved by the Turkmen side in order to realize this goal as Turkmenistan is willing only to sell its gas on their border with the Caspian Sea. Azerbaijan creates opportunities for other countries to export their gas to Europe, and can make additional investments in new infrastructures however the country needs a guarantee from other side, he emphasized.

The energy minister also highlighted the fact that there is a political support by the West including the U.S and European states for the construction of the Southern Gas Corridor which is an essential factor for the realization of such a project.

During the interview, Aliyev spoke about the low oil prices and reasons causing it such as political factors - geopolitical tensions between countries, in particular Russia and the West, the U.S. shale revolution and others.

Aliyev expects a slight increase in the oil prices by the end of 2016 but not more than $60. In 2017, the minister believes there can be $5-$10 per barrel increase in oil prices. The economic growth will be important factor defining global oil prices in the future, according to the minister.

In addition, the problem about acquisition of Greek gas transmission system operator DESFA’s stake by Azerbaijan’s state-owned company will be solved by selling 17 percent of company’s share in DESFA to Italian Snam soon, Aliyev said.

SOCAR won a tender in December 2013 on the sale of 66-percent share in DESFA for 400 million euros ($448 million). However, the European Commission started an inquiry into the compliance of the deal on the acquisition of this stake with the EU’s M&A regulations in November 2014.

The European Commission does not want the majority stake of such a big Transmission System transferred to the hands of a non-EU country, but remain under the Greek control.

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Fatma Babayeva is AzerNews’ staff journalist, follow her on Twitter: @Fatma_Babayeva

Follow us on Twitter @AzerNewsAz

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