Southern routes of gas to Europe: fighting without competition

Southern routes of gas to Europe: fighting without competition

Azerbaijan, Baku, Nov. 27 /Trend/

Trend commentator Aygun Badalova

It is expected that the construction of the South Stream pipeline will be launched in early December. A final investment decision on the offshore section of the project was made in mid-November, and later head of Russia's Gazprom Alexei Miller announced that the construction of this section will be launched on December 7.

South Stream project is often seen as a rival to Nabucco the main purpose of which is to increase the energy security of Europe. The belief that the Russian project is a rival to Nabucco project, which was once called a priority for the European Union and that the start of construction of the South Stream would weaken the position and importance of the Nabucco can be called a mistake.

Nabucco, or more precisely Nabucco West, is part of a large Southern Corridor project, which will deliver gas from the Caspian region to the EU. It is the main advantage of the Southern Corridor project over the South Stream project, which is offering the diversification of supply routes, but did not diversify the sources of gas supply. And this, as the EU has repeatedly stated, is the main goal and an important element in ensuring the energy security of Europe.

"The EU has nothing against the South Stream, but it never was a European priority, because this project is diversifying routes, but not the sources of supply," source in the Energy Department of the European Commission told Trend earlier.

The Caspian region with its large gas reserves has always been attractive for Europe, and the opening of the Southern Gas Corridor will be a major step for its connection to the European markets.

Currently Azerbaijani gas, specifically natural gas, which will be produced in the second stage of development of Azerbaijani gas condensate field Shah Deniz is the main source of gas for the Southern Corridor.

At the same time, the Southern Gas Corridor is a project with great prospects. Pipeline capacity within the Southern Gas Corridor, it doesn't matter Nabucco West or Trans Adriatic Pipeline (TAP) may be increased from 10 to 23-24 billion cubic meters per year without any technical difficulties if additional volume of gas (gas from other fields of Azerbaijan or Turkmen gas) is received.

A lot of work is done for the realization of the Southern Gas Corridor project. Trans Anatolian Pipeline (TANAP) project implemented together with Turkey, which involves the construction of a pipeline from Turkey's eastern border to the western border of the country and through which Azerbaijani gas will be delivered to Europe via Turkey, can be called the main evidence and an indicator of firm intention and real action of Azerbaijan for the implementation of the project. TANAP construction is scheduled to begin in 2013-2014.

To date, the main issue, which is remained is through which pipeline will Azerbaijani gas transported from the Turkish-Bulgarian border to the European markets. This issue will be resolved in 2013, followed by a final investment decision on the selected pipeline project. Thus, the construction of the Trans Adriatic Pipeline is expected to begin in 2015. Start of gas deliveries is expected in 2018.

Thus South Stream and Southern Corridor projects are ahead of the competition in terms of sources of gas supply. The opening of the Southern Gas Corridor is a realistic prospect Given the EU's energy plans for diversification, the presence of gas volumes, allowing the EU to achieve these goals, as well as the desire and effort of Azerbaijan to bring own gas to EU markets.

A realization of the South Stream project will in no way be able to prevent the opening of the Southern Gas Corridor. Moreover, these two projects can co-exist in parallel without interfering with each other. If Russia has the desire and financial ability to build the pipeline, it is its right and choice. European Union in this case will follow the principle of the more gas is better, and at the same time do not give up quite understandable and reasonable desire to have an alternative to Russian gas sources.

Subscribe to Trend in Google News! Subscribe
Labour migration from Turkey to Germany slightly increased in 2021
Labour migration from Turkey to Germany slightly increased in 2021
SOCAR Turkey talks on demand for STAR Refinery products
SOCAR Turkey talks on demand for STAR Refinery products
Turkey shares data on export of cement and glass ceramics to Azerbaijan
Turkey shares data on export of cement and glass ceramics to Azerbaijan
Loading Bars
Sudan security forces fire tear gas on protesters
Launch of Baku-Shusha bus route of particular importance for Shusha city - Special Representative of Azerbaijani President
Azerbaijan talks applications received by SMB Development Agency on creating business in liberated lands
Uzbekistan working to establish power supply in Tashkent region
Azerbaijan discloses annual turnover growth of E-PUL payment system for 2021
Price indexes of financial, construction sectors at Uzbek stock exchange fall
Toyota Caucasus becomes member of Business Association of Georgia
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 757 more COVID-19 cases, 302 recoveries
Turkmen livestock complex in Akhal region names volume of production
Uzbek company reveals volume of exports to French Bonduelle
Bank of Georgia supports new tower construction in Tbilisi
Iran’s Bahar Azadi gold coin price continues to rise
Azerbaijan sees growth in local banks' total assets in 2021
Azerbaijan unveils number of businesses affected during second Karabakh war (PHOTO)
Azerbaijan's monetary base increases in 2021
Iran shares value of shrimp exports
Azerbaijan’s Small and Medium Business Development Agency discloses number of start-up certificates issued in 2021
Azerbaijani President Ilham Aliyev sends congratulatory letter to chairperson of Organization of War, Labor and Armed Forces Veterans
Central Bank of Iran shares data on country’s foreign debts
Iran sees increase in liquidity
Azerbaijani Small & Medium Business Dev't Agency talks about its activities in 2021
Serbian deputy PM to visit Azerbaijan
EU regulator set to rule on Pfizer COVID pill by end-Jan, ahead of Merck
Kazakhstan records decrease in annual inflation in December 2021
Low-carbon transition pressures to accelerate in 2022
Iran unveils volume of electricity generated by Esfahan TPP
Capital of Iran’s Bank Mellat soars
Uzbekistan sees increase in newly created enterprises
IOM talks about areas of cooperation with Turkmenistan in 2022
Luxembourg’s SES S.A. continues steps within Kazakhstan’s state program foe economy dev't
Croatia to send three delegations to Azerbaijan
Luxembourg’s SES S.A. to launch satellites to boost internet speed in Kazakhstan
Labour migration from Turkey to Germany slightly increased in 2021
Iran shares data on production capacity of Petrochemical Special Economic Zone
Kazakhstan maintains positive trend in local consumer demand
Kazakhstan’s Samruk-Kazyna Fund preliminarily approves new procurement procedure
Georgia sees growth in residential property price index
Brazil's Embraer wins order for 20 aircraft from U.S. lessor Azorra
Judicial investigation of two Armenian citizens accused of terrorism completed in Azerbaijan
Russia records another 65,109 coronavirus cases
Azerbaijan's BTB Bank announces net profit for 2021
Georgia's hotels to see increase in demand – forecast
People wanted for grave crimes extradited to Azerbaijan - Prosecutor General
India’s imports from China soar to almost $100 bn, led by smartphones, machinery
Uzbekistan reveals structure of foreign trade turnover
Iran reveals COVID-19 data for January 24
Boeing invests $450 mln in flying taxi developer Wisk
Azerbaijan Gymnastics Federation resuming local competitions
German group of companies to construct plant in Uzbekistan
Turkmenistan's Akhal Electric Power Station boosts output rate
Azerbaijani police calls on citizens coming to Shusha to observe security rules
Georgia to provide financial support to senior citizens - PM
India's Infosys confident about more offshoring opportunities
Azerbaijani Defence Minister meets with Finland's MFA delegation (PHOTO)
Turkmen multifilament yarn manufacturer exports to foreign markets
National Bank of Kazakhstan increases base rate
JPMorgan merges EU operations into single German business
Turkmen enterprise reveals output of glass sheets
Turkmenistan's State Bank for Foreign Economic Affairs opens tender for audit
TAP’s technical forward capacity by Jan.30
Azerbaijan - Georgia's top fuel, lubricant supplier in 2021
NEQSOL Holding delivered Strategic HR Business Partner Program for HR professionals
Physical gas flows, nominations at TAP’s interconnections
Progress on iron foundry construction project in Kazakhstan unveiled
Weekly review of Azerbaijani oil market
Georgia’s hazelnuts export value, volume grow
Iran seeks to increase economic ties with Iraq
Iran to put taxes on petrochemical exports revenues
SOCAR Turkey talks on demand for STAR Refinery products
Kazakhstan unveils trade data with its top partners in Americas
First passenger bus from Baku arrives in Azerbaijan’s liberated Shusha (PHOTO/VIDEO)
Electricity generation booming at Iran’s biggest thermal power plant
Azerbaijan to hold auction to place Unibank’s bonds on Baku Stock Exchange
Azerbaijani AFB Bank discloses net profit for 2021
Turkmengaz to purchase material and technical resources via tender
Uzbekistan to support new projects of food producers
Anil Agarwal to set up $10 bn fund to hunt for govt assets
Outbreak alert: members of Georgia's government test positive for COVID-19
Azerbaijan approves agreement on customs co-op with Saudi Arabia
Iran records surge in number of flights via Shahid Beheshti Airport
Visa regime between Azerbaijan and Qatar cancelled
Iran's handmade carpet production declines
Footage of Iranian Minister of Roads and Urban Development arriving in Fuzuli International Airport published (PHOTO)
Uzbekistan to build new power units at its Angren TPP
Georgia’s Batumi City Hall talks loan interest to be paid out to EBRD, KfW
Turkmen Commodity and Raw Materials Exchange reveals trades for Jan. 17 through 22
Iran, Uzbekistan may be implementing eTIR system in pilot mode
Ukraine discloses number of incoming Azerbaijani tourists in 2021
Iran shares data on power generation of Shahid Rajaee TPP
First regular passenger bus from Baku arrives in liberated Aghdam (PHOTO)
Overall index of Tehran Stock Exchange drops
Kazakhstan increases fuel oil production in 10M2021
Uzbekistan to co-op with French Textile Industry Union in light industry
Iran discloses data on tourists visiting country
Azerbaijan to display historical monuments damaged by Armenia in Aghdam (PHOTO)
Bulgarian energy minister to visit Azerbaijan
Netaji Subhas Chandra Bose honoured by Indian Embassy In Germany; exhibition inaugurated
Iran, Belgium review co-op opportunities
Uzbekistan adopts new dev't program for 2022-2024
All news