BP: Azerbaijani gas is most effective for delivery to European markets
USA, Washington, Feb.19 / Trend L.Katyk /
The natural gas supply from the Caspian region to Europe will be increased over the next decade, BP Expert Greg Saunders said at 'The US Strategy in Southern Caucasus and the Caspian 'conference held in the Center for Strategic and International Studies (CSIS) in Washington on Friday.
"I hope that supplies will significantly increase from the Caspian region via Turkey to the European markets," Saunders said, evaluating current and future trends in the energy markets and Azerbaijan's potential in the south energy corridor. "
He predicted a significant increase in demand for gas from the Caspian region. He believes the share of gas supplies from the Caspian Sea to Europe will reach 5-10 percent by 2025.
Based on BP's 2009- statistical estimates over the supply of energy resources from the Caspian region, Turkmenistan possesses the largest proven resource. The country is followed by Kazakhstan and Azerbaijan, but if "you look at it in terms of marketing and gas supply to Europe, you have to look at the situation through an entirely different perspective', Saunders said.
"Where is the available gas, which is cheapest to deliver to the Western markets, located?" Saunders inquired. "In reality, the best place that can be found, and the most abundant - is Azerbaijan."
Saunders prefaced his assessment by saying that excess has been observed in the natural gas supplies to Europe recently, and so many countries and companies are trying to renegotiate contracts with Russia's Gazprom to achieve better prices and larger volumes.
But, he said, the combination of economic growth and climate change policy will result in an excess by the end of this decade that will turn into a deficit.
"A search for additional sources of gas will be observed and gas supplies will be diversified," Saunders said.
"We will be aware of the amount and ways, through which Azerbaijani gas will be delivered to Europe, by late 2011," he added.
According to "BP Statistical Review of World Energy" published in 2009, Turkmenistan's gas reserves amount to 8.1 trillion cubic meters, Kazakhstan's - 1.82 trillion cubic meters and Azerbaijan's - 1.31 trillion cubic meters.
The Southern Corridor is a priority EU energy project diversifying energy supply routes and sources and increasing EU energy security. The Southern Corridor includes the Nabucco gas pipeline, Trans Adriatic Pipeline, White Stream, and ITGI.