Baku, Azerbaijan, Nov. 23
By Maksim Tsurkov - Trend:
The gas exporting countries held a meeting in Eurasia Nov. 23. This meeting will mainly predetermine the development of the energy market of the continent. Azerbaijan has recently become an observer of the Gas Exporting Countries Forum (GECF). The heads of the GECF countries held the third meeting in Tehran. The calls were made there for gas producers to work together.
Although Azerbaijan's participation in this organization as a full member is impractical because it will reduce the sovereignty of decision-making and flexibility of operations, the results of the meeting may have a positive impact on all energy projects of the country.
In particular, Russian President Vladimir Putin's statement is worth noting. President Putin highlighted the importance of the long-term contracts and the take or pay principle for the stability of the gas market, investments.
Today, many countries, such as Turkey, are trying to reconsider these cornerstones conditions of the gas contracts in terms of the decline in gas consumption. The long-term and gas selection warranty not only make these contracts stable, but are also a guarantee for multibillion-dollar investments of suppliers.
The importance of these conditions for Azerbaijan can be demonstrated by mentioning some facts and figures. The project cost of production and supply of Azerbaijani gas to Europe is estimated at more than $ 45 billion. This makes this project one of the largest infrastructure projects in the world. The new pipelines stretching for thousands of kilometers are being built to ensure gas supply. The Southern Gas Corridor will be the first and so far the only new source of gas for Europe.
During the meeting, the participating countries discussed the issues, having significance for all, namely, the fall in oil prices, and as a result a decrease in gas prices. Moreover, all major suppliers in the region today are concerned about increasing the supply of liquefied natural gas from the US.
Today it is extremely important for such countries as Russia to enlist the support of other major suppliers to solve the problem as a result of the decline in gas consumption volumes in Europe and inaccurate forecasts of Russian Gazprom.
It is also important for Iran to take into account the mood of gas suppliers, as in the near future if sanctions are lifted, the country will enter the market with its own fuel.
The military conflicts in the Middle East, terrorist attacks in Paris, the Russian aircraft blown up over Egypt greatly aggravated security all over the world. But despite the political risks, the importance of the economic and, in particular, energy security does not lose relevance. A meeting of the heads of the gas exporting countries held in Iran testified to this.
Trend commentator Maksim Tsurkov
