Central Asian gas supplies to Europe depend on Trans-Caspian project

Azerbaijan, Baku, Jan. 19 / Trend V. Zhavoronkova /

The first stage of implementing the Nabucco project has good prospects to proceed if Azerbaijan decides to supply gas extracted from the Shah Deniz field for this pipeline, European expert on energy Neil John Melvin said.

But the realization of the project will depend upon gas from Turkmenistan and Iraq.

"If Baku decides to give its gas from the Shah Deniz field for Nabucco, then the first stage has good prospects to proceed. But the problem is that the second stage must be agreed before the first stage is launched. The realization of the second stage depends upon gas from Turkmenistan and Iraq," Melvin, member of the European energy agency and expert of the Stockholm International Peace Research Institute (SIPRI), told Trend over the phone from Sweden.

One of the main sources of gas for Nabucco, and other projects within the Southern Corridor, is gas produced within the full-scale development of Azerbaijani large gas condensate field, the Shah Deniz. The partners developing the Shah Deniz field plan to sign contracts for the sale of gas from the second stage of the project development in mid-2011.

The expert said that the realization of the Nabucco project designed to transport gas from the Caspian region and the Middle East to the EU countries depends on two things: Baku's decision on where to deliver the gas, and delivering resources by Turkmenistan and Iraq for the second stage of the project.

Last week, President of the European Commission José Manuel Barroso paid a visit to Azerbaijan and Turkmenistan, both of which are considered main suppliers of gas for the Nabucco project. The result of his visit to Azerbaijan was a joint declaration on "Southern Gas Corridor" signed in Baku. It is considered by the project participants as an important step towards its establishment.

During Barroso's visit to Turkmenistan, President Berdimuhamedov expressed interest to supply gas to the European market. He called the Trans-Caspian gas pipeline the most attractive option. No agreements fixing the intention of Turkmenistan and guarantying the delivery of Turkmen gas to Europe were signed.

Andrew Reed, analyst for U.S. analytical company ESAI (Energy Security Analysis, Inc.), said that Turkmenistan at last made a public statement confirming its intention to transport its gas through the Trans-Caspian gas pipeline.

"President Berdimuhamedov made a statement because there is time for a decision. Europe needs a positive signal from Turkmenistan to make a decision," Reed told Trend via e-mail.

Turkmenistan has enough gas resources to meet its commitments to the Chinese and Russian markets, as well as to supply the Nabucco pipeline and TAPI (Turkmenistan-Afghanistan-Pakistan-India) with gas in case of constructing the necessary infrastructure, Melvin said.

"They are building the East-West pipeline now, which will somehow make the movement of Turkmen gas to the Trans-Caspian pipeline possible," Melvin said.

There are many ways of transporting Turkmen gas to Europe but the Trans-Caspian gas pipeline will be the most effective and the easiest if there is no politic underlying theme, he said.

"So, we are approaching a very important moment where both Azerbaijan and Turkmenistan, as suppliers, and Europe, as a consumer, are going to bind themselves to the Trans-Caspian pipeline and the Southern Corridor, including Nabucco pipeline," he said.

To find a way to transit Turkmen gas to the European market was Turkmenistan's long-standing ambition. This initiative was also supported by Azerbaijan, the expert said.

We are approaching a point now whereby all sides have to make a formal commitment to construct the Trans-Caspian pipeline, he said.

"Otherwise the idea of transporting Central Asian gas through the Southern Corridor supported by Europe has few chances to become a reality," he said.

The Trans-Caspian gas pipeline will have a length of about 300 kilometers and will be laid on the Turkmen coast of the Caspian Sea. The pipeline will connect to Azerbaijan, where it will link to the Southrtm Corridor, which includes the Nabucco pipeline project and is a priority for the EU.

Turkmenistan's position is that the consent of those countries through which it will pass (that is, Azerbaijan and Turkmenistan) is required for the laying of the gas pipeline.

Nabucco is worth 7.9 billion euro, with its construction scheduled to start in 2012 and the first supplies to be commissioned in 2015. The project's participants include the Austrian OMV, Hungarian MOL, Bulgarian Bulgargaz, Romanian Transgaz, Turkish Botas and German RWE, each having an equal 16.67 percent share. The pipeline's maximum capacity will hit 31 billion cubic meters per year.

He said that the way of transporting compressed natural gas through the Caspian Sea by tankers, which was mentioned by the Turkmen President, is technically possible, but is not the best option.

"This will increase gas prices and put the economic efficiency of the project under question. The question on the maximal possible volumes of transported gas occurs," he said.

According to BP, Turkmenistan's proven gas reserves as of early 2010 are estimated at 8.1 trillion cubic meters (fourth place in the world), and Azerbaijan's reserves are at 1.31 trillion cubic meters.

Badalova contributed to the article.

German Energy Agency supports dev’t of energy-efficient housing refurbishment in Uzbekistan
German Energy Agency supports dev’t of energy-efficient housing refurbishment in Uzbekistan
New hydrocarbon reserves discovered in Turkmenistan
New hydrocarbon reserves discovered in Turkmenistan
Uzbekistan to receive observer status in EAEU
Uzbekistan to receive observer status in EAEU
Loading Bars
Kazakh parliament approves amendments on activities in Caspian Sea
Azerbaijan to open new routes to connect liberated areas with other districts
Turkish MoD congratulates Azerbaijani people on victory in Patriotic War
Georgia reports 4,033 new cases of coronavirus
Number of inquiries related to computer security in Azerbaijan drops
New hydrocarbon reserves discovered in Turkmenistan
German Energy Agency supports dev’t of energy-efficient housing refurbishment in Uzbekistan
German retail sales rise more than expected before partial lockdown
Uzbekistan to receive observer status in EAEU
Eni revises up Azerbaijan’s gas reserve estimates
Georgia discloses forecast revenue of Tbilisi Transport Company
Azerbaijan talks major restoration work to be carried out on liberated territories
Turkey says export of local defense products to Iran surges
US decreases exports to Kazakhstan year-on-year
World’s gas reserves slightly up y-o-y
Azerbaijan has potential to preserve qanats in Karabakh - Iranian researcher
Azerbaijani MFA talks information about French MPs' planned trip to Karabakh
Azerbaijan to develop transport sector on territories liberated from Armenian occupation
Prices on Azerbaijani oil change
Kazakhstan taking measures to double agriculture goods export via digitalization
Kazakh KazMunayGas to continue improving sustainable dev't activities
Turkmennebit State Concern puts new productive wells into operation
Azerbaijan can take steps to include its underground water channels into UNESCO list
Turkey's October 2020 car exports to France increase
Azerbaijan's AccessBank looks to regain share in agricultural lending
UAE boosts import of defense industry products from Turkey
Uzbek Agriculture Ministry reveals volume of harvested raw cotton
Iranian currency rates for December 2
Trading in shares of Xiaomi halted pending share sale, bond issue statement
Demand for Turkish cars in Kazakhstan increases
Albgaz invites bids for maintenance of TAP section in Albania
Albania ready to offer full range of gas network maintenance services for TAP
Azerbaijani currency rates for Dec. 2
Fuel demand to recover over 2021-2022, while growth rates to soften
Turkmenistan’s Turkmengas plans to increase productivity of wells
Uzbekistan reveals its COVID-19 data for December 2
Cargo traffic to/from Azerbaijan via NSTC carried out regularly
Azerbaijani branch of Romanian IT GRUP talks plans for 2021
OPEC+ failure could be highly detrimental for oil prices
SecGen of OIC sends letter to President of Azerbaijan
Gov't spokesman warns against quick decisions on Iran's nuclear program
Kazakh power networks maintenance company to buy construction materials via tender
Japan ruling party weighs up inheritance tax exemption for foreigners
Iran ready to share scientific achievements with friendly countries
Georgia to increase price of natural gas for commercial consumption starting January
Singapore becomes first country to approve sale of lab-grown meat
Turkey, EU cooperation key to fight hate, discrimination in Europe: Comms Director Altun
683 COVID-19 cases among schoolchildren registered in Kyrgyzstan in 3 months
State-owned enterprises in Georgia lose about 130 mln GEL due to pandemic
Eurozone manufacturing sector expands at slower pace
Borrell highlights terrorist nature of Fakhrizadeh assassination
Kazakhstan invites Hungarian companies to jointly hold geological exploration
Bezos' Blue Origin taps former Pentagon, NASA officials for new advisory board
Ford announces 580 mln USD investment in Argentina
Cement price up in Uzbekistan due to decrease in production volumes
House seen backing bill that could block Chinese firms from U.S. securities markets
Lebanon central bank can keep subsidies for only two more months
Nigerian troops kill 5 gunmen, rescue nine hostages
Israeli archaeologists discover 2,000-year-old game dice
Tesla CEO says he is open to friendly deal with rival carmaker
Uzbekistan’s export of furniture products to Italy down
Iran increases exports from Gilan Province
Kazakhstan’s freight transportation operator opens tender to buy spares
FAA issues new first air certificate for Boeing 737 MAX since 2019
Number of Kyrgyzstan’s recoveries from COVID-19 reaches 64,711 with 560 new ones
Georgia to participate in discussion on Black Sea security at NATO Foreign Ministerial
Bahar Azadi gold coin price rising in Iran
Turkey to start COVID-19 vaccination drive after Dec. 11
COVID-related restriction may complicate procedures for car registration in Georgia
Euronews prepares reportage from Azerbaijani Aghdam liberated from occupation (VIDEO)
AP highlights aspects of Armenian Armed Forces withdrawal from districts of Azerbaijan
Israeli airline conducts 1st commercial passenger flight to UAE
Humiliating prisoners of war is not characteristic of Azerbaijani people - State Security Service
Quarantine regime to affect some investment projects of Kazakh national oil company
Equal number of Russian, Turkish personnel to work in center to control ceasefire in Nagorno-Karabakh
Georgian IT sector to arouse investor interest
Azerbaijani marine infantry personnel return to place of permanent deployment (PHOTO)
Delivery process of logistic support assets for peacekeeping contingent in Azerbaijan continues (PHOTO/VIDEO)
Georgian economy sees decrease due to COVID-19 lockdown
Return of Lachin district by Azerbaijan has not only important political, but also economic significance - Georgian expert
AP publishes article highlighting political success of Azerbaijan over Karabakh conflict
Foreign trade operations between Azerbaijan and Poland up
Georgia reveals details of Fourth Stage of Anti-Crisis Plan
Azerbaijani Culture Minister gives interview to France 24
Gradual liberalization of wholesale and retail electricity markets defined in Georgia
Import of aluminum by Azerbaijan up
Georgia approves volume of external debt planned for 2021
Development of well-functioning gas hub to diversify Georgia’s gas market
Uzbekistan, Belarus eye signing mutual tourism dev’t agreement
Demand for tobacco products in Azerbaijan may decline amid pandemic crisis
UAE based company to grow cannabis in Uzbekistan’s Syrdarya region
Fiat brand to electrify 60% of its models by end-2021
Azerbaijani Finance Ministry auctions state medium-term bonds
Georgian hazelnut-producing company faces with complex logistics
Iranian Energy Exchange announces products to be on sale on December 2
Number of phishing attacks on Azerbaijani web sites down
European culture to have new dimensions with Lachin's liberation - US expert
Enagas working on 12 projects in hydrogen developments
Spanish Enagas moving towards more sustainable energy model
Azerbaijan's mortgage fund puts up new bond tranche for auction
All news