Trend commentator: Azerbaijan seeks for alternative routes for gas supplies to EU

Azerbaijan, Baku, April 20 / Trend /

Trend Deputy Director Seymur Aliyev

One of the main problems of countries of the modern world is to ensure own energy security. The issue is not only reliable supply with energy resources but ensuring of stabile, reliable and diversified routes of oil and gas supplies in case of countries-producers.

Today, Azerbaijan has seven pipelines through which oil and gas export is implemented. Azerbaijani oil is exported via oil pipelines to the Black Sea and the Mediterranean Sea. Azerbaijani gas is supplied to Russia, Iran, Georgia and Turkey using gas pipelines. But the basic question of expanding the geography of deliveries on the agenda is the delivery of Azerbaijani gas to Europe.

Azerbaijan considers alternative routes, in particular, transportation of liquefied natural gas via the Black Sea to Europe along with well-known planned pipeline projects of South Corridor, such as Nabucco, ITGI, Trans Adriatic Pipeline.

Azerbaijan, Romania and Georgia have signed a memorandum 'Cooperation in gas supplies' in Bucharest in mid-April. The draft on liquefied Azerbaijani gas to Romania envisages the construction of two terminals for liquefied natural gas - one in Georgia, the other one - in Romania. According to preliminary data, the project cost will amount to 4.6 billion euros.

The memorandum on the implementation of this project was signed between Georgia and Romania in October 2009, and Azerbaijan and Romania - in early 2010.

Today, construction of the terminal processing Azerbaijani gas at Georgia's Black Sea coast (SOCAR - State Oil Company of Azerbaijan owns the oil terminal in Kulevi) and its transportation by the ships to Romania or Bulgaria for further shipment via domestic gas pipeline network of Europe.

The project is considered in two directions - LNG and CNG. First one is the construction of gas liquefaction plant, and the second one - delivery of gas directly to the ship for its compression. It deals with 7-20 billion cubic meters of gas.

The parties intend to prepare a feasibility study for this project. Preparation of feasibility study will reveal the most advantageous option of gas export via the Black Sea.

Minister of Industry and Energy Natiq Aliyev said that the project of Azerbaijani liquefied natural gas via the Black Sea to Romania can be further expanded owing to joining of Bulgaria, Ukraine and Moldova.

Use of these routes will allow Azerbaijan to bring its gas to markets not covered within the pipeline projects realized as a part of the Southern Corridor of energy supplies. In future this may lead to the participation of SOCAR in the retail sale of gas on these markets.

Availability of alternative routes for Azerbaijani gas delivery to European market, particularly in Romania, must accelerate the implementation of pipeline projects within the Southern Corridor, which still continue to be regarded as major ones.

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