Azerbaijan, Baku, August 8 / Trend S. Aliyev /
There is more competition between Nabucco and South Stream gas projects than between Samsun-Ceyhan and Burgas-Alexandroupolis oil pipeline projects, Russian Prime-Minister, Vladimir Putin, said in Turkey recently.
"It is known that Nabucco and South Stream compete in gas," Putin said.
Russian Prime-Minister's statement put end to existence of competition and alternative way of both routes.
The inter-governmental protocol on cooperation in gas was signed during Putin's visit to Turkey. Signing of this document will allow Russia conducting exploration operations on South Stream project in Turkey. Plans on construction of Blue Stream-2 gas pipeline were also confirmed in the protocol.
Thus, Turkey has expressed readiness to provide its territory under realization of South Stream project. This issue became more urgent amid statements of Bulgarian new government on suspension of cooperation with Russia concerning construction of this pipeline through its territory.
South Stream must connect Russia through seabed of the Black Sea (900 km) with Bulgaria and be divided into two directions in future: via Greece to Italy, and through Serbia and Hungary to Austria. Cost of underwater area is estimated at $10 billion, capacity of the pipeline will hit 30 billion cubic meters of gas per year.
At present, EU considers Turkey as a hub for alternative gas supplies to Europe. Three projected alternative (for Russian supplies) routes of pipeline - Nabucco, ITGI, and Trans-Adriatic gas pipeline pass through Turkey. All of them are designed for partial or complete gas filling from the Caspian region - Azerbaijan and Turkmenistan. Turkish company Botas has share holding in projects.
So-called South Corridor envisages creation of alternative to Russian gas supplies, which is fully supported by EU.
At present, supplies of Azerbaijani gas extracted from a large gas condensate field Shah Deniz (amount of proven reserves hits 1.2 trillion cubic meters of gas) is supplied to Georgia and Turkey. It is necessary to conclude the agreement on Azerbaijani gas transportation through Turkey to supply gas to Europe. However, despite negotiations are conducted for a long time, the agreement has not been signed yet.
Main reason for this course of events, first, can be Turkey's wish to re-export gas entering its territory. But suppliers do not agree. Moreover, agreement on change of cost of Azerbaijani gas for Turkey has not been reached up to now. Experts also consider this fact as one of reasons affecting non-conclusion of the transit agreement.
Besides European countries, Middle Eastern countries, such as Israel and Syria, voiced their willingness to buy Azerbaijani gas. It was assumed that supplies can be carried out through Turkey. Russia also considers these prospects.
During negotiations, Russia and Turkey have agreed to launch exploring of opportunities for future construction of additional branch of gas pipeline Blue Stream - Blue Stream-2 with further export of hydrocarbons to third countries (Cyprus, Israel, Lebanon and Syria) through Turkey.
Thus, today, at present, Turkish territory becomes key to gas supply and ensuring of energy security not only for Europe but, perhaps, for the Middle East. If earlier Turkey was considered as alternative for Russian gas supplies to Europe, today, the Russian gas is traditionally on the the Turkish many years, and can transit through Turkey. Certainly, it will affect effectiveness of realization of such projects as Nabucco, ITGI and Trans-Adriatic pipeline.
Way out of this situation can be rapid implementation of construction projects of alternative gas pipelines and conclusion of contracts with owners of resources on gas supply via these routes. Official representatives of Azerbaijani various organizations repeatedly stated that gas will be directed to the route, at which the most effective terms and tariffs for gas sale will be offered. This fact once again proves the agreement on gas supplies signed between Azerbaijan and Russia from early 2010. According to this document, Baku is ready to supply Russia with not less than 500 million cubic meters of gas per year.
NABUCCO is projected main 3,300-kilometer-gas pipeline avoiding Russia from Central Asia to EU countries, mainly, Austria and Germany. Project capacity is 26-32 billion cubic meters of gas per year. Construction is planned to complete by 2013.
OMV Gas GmbH (Austria), Botas (Turkey), Bulgargaz (Bulgaria), S.N.T.G.N. Transgaz S.A. (Romania), MOL Natural Gas Transmission Company Ltd. (Hungary), RWE (Germany) participate in consortium on gas pipeline construction.
First, Nabucco gas pipeline project envisaged gas supply from Iranian fields to the Persian Gulf. This project was submitted in 2004. Decision on conflict around Iranian nuclear program was made to change project in order to have opportunity to supply gas from Turkmenistan, Uzbekistan and Azerbaijan.
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