Azerbaijan, Baku, Sept. 13 / Trend E.Ismayilov /
The Azerbaijan-Georgia-Romania Interconnector (AGRI) gas transportation project will provide opportunities for gas supply not only to Romania, but also to Hungary, Bulgaria and other European countries, as well as to Turkey, Azerbaijani Industry and Energy Minister Natig Aliyev said today.
According to Aliyev, Hungary and Ukraine are also showing interest in the project.
Three capacity volumes are being considered for the project, he added: 2 billion cubic meters of gas a year, 5 billion cubic meters and 8 billion cubic meters.
According to preliminary data, the cost varies from 1.2 billion to 4.5 billion euros depending on capacity.
"Everything will depend on the cost of capital investments, operating expenses and the operating mode which will be created. The more liberal the regime, the sooner we can raise funds on good terms," Aliyev said.
Aliyev said the expected timing for the project is 20 months, but that final figures, timing and the amount of investment needed will become clearer after the preparation of a feasibility study
The Azerbaijani-Georgian-Romanian joint venture, in which each party will have an equal share, will operate the project. However, Aliyev said, this ratio may change with the participation of other countries in the project.
This project should not be viewed as competing with projects such as Nabucco, because Nabucco is primarily focused on large volumes and gas from several countries, Aliyev said.
Work to connect natural gas networks of Romania and Hungary is set for late 2010. This will enable to transport gas through these countries to Baumgarten, Austria, which is a gas distribution center in Europe, he added.
A ministerial meeting to consider AGRI opened in Baku today.
The leaders of Azerbaijan, Georgia and Romania are expected to meet in Baku tomorrow to sign the Baku Declaration on the AGRI project.
A memorandum of understanding on cooperation in the field of liquefied gas and its transportation under the Azerbaijan-Georgia-Romania Interconnector project was signed in Bucharest on April 13.
Georgia, Azerbaijan and Romania signed an agreement on the establishment of a joint venture in a project to transport Azerbaijani gas to Europe on May 12.
The project to supply Azerbaijani liquefied natural gas to Romania envisages the construction of two terminals for liquefied natural gas - one in Georgia, the other in Romania. According to preliminary data, the project will cost 4.6 billion euros.
The project envisages transporting Azerbaijani gas via pipelines to the Black Sea coast of Georgia, where the gas will be liquefied at a special terminal, after which the gas will be delivered to the terminal in the Romanian port of Constanta by tankers. Later the liquefied gas will be converted into natural gas and, using gas infrastructure available throughout the country, will be sent to cover the needs of Romania and other European countries.
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