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US to continue helping its European partners proactively diversify their energy supplies

Oil&Gas Materials 13 January 2020 12:13 (UTC +04:00)
US to continue helping its European partners proactively diversify their energy supplies

BAKU, Azerbaijan, Jan.13

By Leman Zeynalova – Trend:

The US will continue helping its European partners proactively diversify their energy supplies, Nathan Reich, Energy Diplomacy Officer, Bureau of Energy Resources, US Department of State, told Trend.

“In our diplomatic work on energy security, we emphasize the importance of diversification of energy supplies. The reason for this is straightforward. Monopolies with political reach can subvert a country’s political system, sabotage its economy, undermine its social welfare. As a result, we will continue to do what we can to help our European partners and allies proactively diversify their energy supplies – by country of origin, path of delivery, and fuel types, including renewables – so they can avoid situations in which a supplier of energy can use their energy import reliance to advance malign political and economic objectives,” said the energy diplomacy officer.

Reich pointed out that in this context, the US Government views the Southern Gas Corridor as a strategic project.

“Once completed, it will provide Europe with a new long-term source of supply to meet its natural gas demand. By diversifying Europe’s natural gas imports, the Corridor will enhance European energy security and thus advance our shared national security interests,” he said.

The energy diplomacy officer noted that the same may be said of Europe’s expanding ability to import LNG, including from the United States.

“The global growth in LNG production and trade is a boon to Europe for economic and energy security reasons. According to one estimate, the option to import LNG saved European consumers $8 billion in 2018 alone. And the optionality LNG provides, as with the Corridor, means our European allies and partners have more control over their economic prosperity and national security. The Corridor and LNG are complementary,” he said.

Reich went on to add that for the US Government, the Southern Gas Corridor is valuable for two main reasons: one has to do with energy security, the other with political and economic integration.

“For decades the US Government has diplomatically invested in European energy security because it is vital to economic prosperity and political sovereignty, and thus to the strength of the transatlantic alliance. It should come as no surprise then that the US government views a threat to European energy security as a threat to US national interests,” said the energy diplomacy officer.

For the US Government, the Corridor also has and will continue to facilitate greater political, economic, and cultural trade and exchange between the Caspian region, Europe, and the United States, he added.

“Open commercial and cultural relations can build trust and a sense of shared interests, which can support an alignment of domestic and foreign policies. Additionally, they can provide a path through which to press for political, economic, and social reforms, greater protection of political rights and civil liberties, jointly agreed solutions to longstanding disputes, and broad and sustainable improvements in living standards. We strongly support the principle that commercial relations can spur and deepen other relations and by doing so make the world a better and safer place for everyone,” added Reich.

The Southern Gas Corridor project aims to increase and diversify European energy supply by bringing gas resources from the Caspian Sea to markets in Europe.

The Southern Gas Corridor comprises the following four projects: (i) operation of Shah Deniz natural gas-condensate field ("SD1" project) and its full-field development ("SD2'" project), (ii) the operation of the South Caucasus Pipeline ("SCP" project) and its expansion ("SCPX" project), (iii) the construction of the Trans-Anatolian Natural Gas Pipeline ("TANAP" project) and (iv) the construction of the Trans Adriatic Pipeline ("TAP" project) (SD2, SCPX, TANAP and TAP collectively, the "Projects").

The Projects have an estimated investment cost of approximately $40 billion. Upon completion, the SD2 project will add a further 16 bcm of natural gas per annum to 10.9 bcma (maximum production capacity) already produced under SD1 project.

Total length of the newly constructed SCPX, TANAP and TAP pipelines will be more than 3,200 kilometres.

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Follow the author on Twitter: @Lyaman_Zeyn

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