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European Commission: Azerbaijani–Turkish deal to complement Nabucco intergov’l agreement

Oil&Gas Materials 27 October 2011 12:55 (UTC +04:00)
The Azerbaijani–Turkish deal signed this week will complement the Nabucco intergovernmental agreement signed in 2009
European Commission: Azerbaijani–Turkish deal to complement Nabucco intergov’l agreement

Azerbaijan, Baku, Oct. 27 / Trend A.Badalova/

The Azerbaijani-Turkish deal signed this week will complement the Nabucco intergovernmental agreement signed in 2009, European Commission reported.

"This agreement only set out the terms for the Nabucco pipeline, and therefore left the terms for competing options open. The Commission will now discuss with Azerbaijan, Georgia and Turkey all the pipeline options that will satisfy the criteria set out in the Commission - Azerbaijan Declaration of January 13, 2011, with the aim of finding a common agreement on the best option," the report said.

Azerbaijan and Turkey on Tuesday signed a package of gas contracts, which includes issues of cost of Azerbaijani gas for Turkey in Shah Deniz Phase 2, volume of gas supplies to Turkey from the field after 2017, as well as a transit agreement for Azerbaijani gas transportation through Turkey.

The transit agreement is necessary for the implementation of projects of Azerbaijani gas transportation to Europe within the Southern Gas Corridor.

"This is a good day for Europe, as the gas that transits Turkey will be used within the European Union," Energy Commissioner Günther Oettinger said.

He said the European Commission will stick to the terms of its agreement with Azerbaijan.

"We want to see sufficient dedicated pipeline capacity, sufficient to cover all physical trades, linking Azerbaijan to Europe," Oettinger said. "We want to see these pipelines operating within a strong legal framework compatible with international law."

The Agreement with Azerbaijan is set out in the European Commission - Azerbaijan Declaration of January 13, 2011, signed jointly by President Aliyev and President Barroso.

"Gas from Azerbaijan will arrive on the European Union's border and be distributed throughout the EU internal market," the European Commission's report said. "Buyers for the gas are now being selected and pipeline options to deliver the gas to the successful buyers will also be assessed. The pipeline options within Turkey are led by Nabucco, but alternatives that deliver dedicated infrastructure within a strong legal framework are also being looked at."

The Commission has pointed out its partners that whichever option is chosen, there must be mechanisms to allow for new gas from Turkmenistan, when gas from that source is ready.

The gas produced during Shah Deniz Phase 2 development is regarded as the main source for the 'Southern Gas Corridor' project. Within Shah Deniz-2 project, Azerbaijan is planning to deliver 10 billion cubic meters of gas to Europe. Partners in the Shah Deniz development project are considering proposals from pipeline projects to determine the route via which Azerbaijani gas will be delivered to Europe.

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