Azerbaijan, Baku, November 26 / Trend corr. S.Aliyev/At present, diversification of energy resources is a basic factor in energy policy of Europe, which increases its use year by year. The European countries are interested in presence of many providers of natural gas to provide its consumers. The Caspian region, particularly Azerbaijan, occupies major place amongst providers.
Energy issues are discussed within the framework of Azerbaijani President Ilham Aliyev's official visit to Italy. The Azerbaijani President received Umberto Kuadrino, executive director of the Italian energy company Edison on 24 November. Cooperation perspectives in energy field have been discussed at the meeting.
Prospects of the Azerbaijani gas delivery to Italy via ITGI pipeline (Turkey - Greece - Italy) are high enough. Nabucco, another European gas pipeline, may be its rival. However, the Azerbaijani gas is not enough fully to fill Nabucco (throughout capacity makes up 30bln cu.m), while throughout capacity of ITGI, which is planned at 12bln cu.m a year, can be fully used for the Azerbaijani gas. Moreover, it is planned to deliver gas, basically, to Eastern Europe via other routes, while the pipeline will enable to bring the Azerbaijani gas to market of Italy, one of economically developed countries of Europe. Italy intends to get about 8bln cu.m of natural gas a year from Azerbaijan via the ITGI pipeline, which will unite Italy, Greece and Turkey by 2012.
Italy and Azerbaijan signed a protocol of mutual understanding on delivery issues in December 2007. In accordance with the protocol, the sides agreed to establish coordination committee, which will render a necessary support during negotiations between the Italian co Edison and SOCAR (State Oil Company of Azerbaijan Republic) on gas delivery, quality and duration of deliveries, in line with throughout capacity of ITGI transport corridor and projects on gas production in Azerbaijan. At present besides a contract on transit of the Azerbaijani gas via Turkish territory, which is regarded major one to deliver the Azerbaijani gas to Europe, an opportunity is being examined to sign a quadrilateral contract amongst Azerbaijan, Turkey, Greece and Italy. Presence of this contract will enable to deliver the Azerbaijani gas to markets of these countries.
ITGI transport corridor which will transport Azerbaijani gas to Greece and Italy includes updated Turkish pipeline infrastructure and also ITG projects (Turkey-Greece junction pipeline) and IGI. Greece-Italy junction pipeline is a missing link of Turkey-Greece-Italy transport corridor which enables to transport gas from the Caspian region and Middle East to Italy and West Europe via Turkey and Greece.
At present, South Caucasus gas pipeline (Baku-Tbilisi-Erzurum) with a length of 690km is the key gas export route from Azerbaijan (442 km lies through Azerbaijan and 248 km through Georgia). The capacity of the pipeline is 20bln cu m of gas. Gas from Shah Deniz gas and condensate field is exported to Georgia and Turkey via this route. The pipeline which cost about $1bln has been launched in early 2007.
Nearly 8.6bln cu m of gas are expected to be produced within Shah Deniz I (total reserves are estimated at 1.2trln cu m of gas). The production is expected to be increased to over 20mln cu m of gas within Shah Deniz II which is scheduled to launch after 2013.
According to the forecast Eni, Italian gas company, by 2013 Europe's gas demand will total to 638bln cu m of gas as compared to 558bln cu m in 2006. By 2020 Europe's gas demand will go up almost by 13% to 720bln cu m.
Edison says in 12 years Europe will be 70% dependant on gas import which will total to 500bln cu m while demand will make up 720bln cu m. The dependence on import totaled to 45% in 2006.
According to Edison who constructs ITGI gas pipeline together with Greek DEPA which will transport gas to Italy through the Adriatic Sea, Europe's gas demand to generate electricity by 2020 will increase to 259bln cu m as compared to 212mln cu m by 2013.
Europe's industrial sector will increase gas demand 8% by 2020 to 196bln cu m against 181bln cu m in 2013. By 2020, European population will increase gas consumption by 7% to 234bln cu m as compared to 218bln cu m in 2013.
By 2020, 310mln cu m of gas will be delivered to Europe by pipelines. About 119mln cu m of gas will account for the delivery of a liquefied natural gas.
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