Azerbaijan, Baku, Jan. 14 / Trend N. Bogdanova, A. Badalova /
Azerbaijan could be a stable and dependable source of gas for Europe if price and transit issues can be solved with Turkey, Julia Nanay, senior director at the Global PFC Energy (Petroleum Finance Company) said.
"Europe depends on a number of gas suppliers, not just Russia. Azerbaijan is seen as an additional supply source once the second phase of Shah Deniz began producing later this decade," Nanay told Trend 's correspondent.
Nabucco would allow Azerbaijan's gas to flow to the Central European countries that are seeking to diversify their gas sourcing," she said.
Nabucco gas pipeline project worth €7.9 billion envisages gas supply from the Caspian region and Middle East to EU countries.
Construction of gas pipeline is planned to be launched in 2011, the first supplies - in 2014.
Maximal capacity of pipeline will hit 31 billion cubic meters per year. Participants of the project are Austrian OMV, Hungarian MOL, Bulgarian Bulgargaz, Romanian Transgaz, Turkish Botas and German RWE companies. Each of participants has equal share to the amount of 16.67 percent.
Nanay said Azerbaijani gas must be transported across Turkey to get to these countries.
Speaking about the talks on the gas price between Azerbaijan and Turkey, Nanay said that taking into account the practice in the region, Turkey and Azerbaijan must reach a mutually acceptable agreement.
Gas prices have definitely been moving higher in response to market forces, she said.
She said Azerbaijan will likely to produce enough additional gas in future to supply a new pipeline to Europe across Turkey, as well as conclude contracts with Iran and other countries.
"If the Nabucco pipeline is built, it will be able to provide Azerbaijan with options to ship its gas in several directions. If problems arise with one route, it can use another direction. Given the country's location, Azerbaijan will be best served with multiple gas export options," she said.
Azerbaijan today has the medium-term contract to supply its own gas to Russia. It envisages an annual gas supply of at least 500 million cubic meters per year. Moreover, Azerbaijan and Iran have signed a short-term contract on Azerbaijani gas supplies to northern Iran this week. The contract stipulates delivery of Azerbaijani gas to the amount of about 100 million cubic meters until March-April 2010. The long-term contract is expected to be signed in summer. It will allow launching supplies to Iran in large volumes - about 1.5 and more than billion cubic meters per year in autumn.
PFC Energy was founded in 1984. It conducts a comprehensive analysis and development of scenarios that are the foundation to develop strategies, evaluate investments and business decision-making at the global and regional levels.