Azerbaijan, Turkey close to reach transit agreement: Turkish deputy energy minister

Oil&Gas Materials 4 June 2009 13:08 (UTC +04:00)

Azerbaijan, Baku, June 4/ Trend , E.Ismayilov/

Compared to the situation a half ago, Azerbaijan and Turkey are currently much closer to reach an agreement on the Azerbaijani gas transit via Turkey, Turkish Deputy Industry and Natural Resources Minister Yusuf Yazar said.

"There are definite changes in the negotiations between Azerbaijan and Turkey on reaching a transit agreement. The negotiations still continue and this negotiation process has been accelerated with the new minister," the deputy minister said.

Yazar said Azerbaijan is also one of perspective gas suppliers in the Nabucco project. Moreover, another version is being examined to join Turkmenistan this project. The possibility to transport the Iranian gas via Nabucco is obscure. If political problems are solved, it will be possible to join Iran this project.

The Nabucco project worth 7.9 billion euro will deliver Azerbaijani and Central Asian gas to the EU by 2014. Construction of the pipeline is expected to begin in 2011. Its maximum capacity will be 31 billion cubic meters per year. Nabucco shareholders are the Austrian OMV, Hungarian MOL, Bulgarian Bulgargaz, Romanian Transgaz, Turkish Botas and German RWE with 16.7 percent each

The Nabucco Gas Pipeline International will invest 30 percent of the project on basis of its share.

The remaining 70 percent will be provided by international institutions.

The topic of the negotiations with Azerbaijan also includes transportation of the Azerbaijani gas via the ITGI gas pipeline. The gas pipeline from Turkey to Greece has been built and operates at the moment. Moreover, gas is currently sold to Georgia, Yazar said.

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. The designed carrying capacity of ITGI is 12bln cu m per year. 

Yazar said at present Turkey satisfies only 30 percent the country's need in energy resources (coal, oil and gas), the remained is imported. Turkey's annual need in gas fluctuates between 34 billion - 36 billion cubic meters per year, but the need in gas gradually increases. Roughly 1.5 billion - 2 billion cubic meters of gas which is necessary for Turkey is produced inside the country and the remained is imported.

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