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Construction of South Flow Pipeline Probable to affect Trans-Caspian Gas Pipeline

Oil&Gas Materials 25 June 2007 18:44 (UTC +04:00)
Construction of South Flow Pipeline Probable to affect Trans-Caspian Gas Pipeline

Azerbaijan, Baku / corr Trend S.Aliyev / Russia's intention on the construction of the South Flow gas pipeline system, demonstrates this country's will of maintaining a monopoly on gas delivery to Europe, according to Sabit Bagirov, ex-President of the State Oil Company of Azerbaijan (SOCAR), currently head of the Fund for Assistance to Business Development and Market Economy.

Alexander Medvedev, Vice Chairman of Gasprom, and Paolo Skaroni, the General Manager of Eni, signed in Rome a memorandum on the construction and exploitation of the gas pipeline system, which will run via the Black Sea and be used for gas deliveries to Italy. The total length of the Black Sea section of the South flow is 900km and the maximum depth of the construction will exceed 2000m.

Bagirov stated that the implementation of this project could complicate the realization of alternative gas deliveries into Europe.

"The implementation of alternative projects on gas deliveries will depend on the positions of Kazakhstan and Turkmenistan, which are the biggest producers,' he noted.

In particular, the construction of the South Flow route might effect the implementation of the Trans-Caspian gas pipeline. Should Turkmenistan and Kazakhstan be interested in the transportation of gas via the territory of Russia, the construction of the Trans-Caspian Pipeline will be questionable,' he stressed.

Nevertheless, chances for the construction of the gas pipeline via the Caspian seabed are considerably high. This is explained by the improved political, economic and ecologic milestones and is linked with the Caspian status," Bagirov added.

At present Russia purchases gas at the border of Central Asian producers and then sell to Europe, transporting via its own lines. The producers have raised an issue on the participation in gas supplies to Europe.

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