Nabucco to enable to regulate prices on gas market

Oil&Gas Materials 12 July 2011 18:30 (UTC +04:00)

Azerbaijan, Baku, July 12 / Trend V. Zhavoronkova /

The implementation of "Nabucco" gas pipeline will provide an opportunity to regulate prices in the international gas market. It is its principal significance, the head of the Energy Policy Center of the Institute of Europe under the Russian Academy of Sciences Alexey Khaitun said.

"Nabucco will give the possibility to reduce and to regulate gas prices," Khaitun told Trend over phone from Moscow. The existence of such an independent way to Europe will provide additional opportunities to balance the prices at an acceptable level for all participants."

The Southern Corridor is a priority EU energy project which will diversify energy supply routes and sources, and increase EU energy security. The Southern Corridor includes the Nabucco gas pipeline, Trans Adriatic Pipeline (TAP), White Stream, and ITGI (Turkey-Greece-Italy pipeline)

The expert said that the "Nabucco" project is economically viable, although its implementation is slightly complicated by "political realities".

"Russian Gazprom does not want to lose its monopoly position on the European market," he said. "But this will not work because no structure, no matter how big it is, can be a monopoly structure in the world market, which is a part of Europe."

The expert said that the project will be realized sooner or later.

The analyst supports the idea of building the Trans-Caspian gas pipeline, which is the initial link in "Nabucco".

This 300-kilometer-gas pipeline is intended to connect Turkmenistan and Azerbaijan. It is planned to be laid from Turkmen to Azerbaijani Caspian coast, where it will be connected to the Southern Energy Corridor transportation routes.

"I support the idea of building the Trans-Caspian pipeline, primarily from a political point of view, because the countries of Central Asia and Azerbaijan need an independent way to Europe," Khaitun said.

However, they need the Trans-Caspian pipeline not only for political reasons. It is also necessary to organize the gas market and to create competition, the analyst said.

He said that the gas pipeline will solve a major problem. It will give all these countries an independent way through Turkey to Europe.
Moreover, it should be noted that this way from Central Asia is shorter than through Russia, as well as shorter than the gas way from Tyumen to Europe.

Therefore, the Trans-Caspian pipeline project cost will be quite effective from the economic point of view. The issue of its implementation is the current task.

"It is clear that Gazprom will object, he said. "The interests of Gazprom are not identical with the interests of Russia."

He said that the supreme interest of the Russian Federation is to establish closer partnership relations with Azerbaijan and Central Asian countries. Partnerships include mutual concessions.