Brussels, 11/01/2011 (Agence Europe) - Much is expected of José Manuel Barroso's visit to Azerbaijan and Turkmenistan later in the week. Fresh commitments on the parts of these two countries in energy cooperation and gas supplies would breathe new life into the Southern Gas Corridor project and its component, the Nabucco gas pipeline, to carry gas from Central Asia to the EU.
With the approach of the first European Council devoted to energy on 4 February, the visit of Commission President Barroso and Energy Commissioner Günther Oettinger to Central Asia from 13 to 15 January will certainly not go unnoticed. Determined to ensure greater energy security for the EU and reduce dependence on supplies from Russia, Barroso is seeking “clear commitments” on the parts of Azeri President Ilham Aliyev and his Turkmen counterpart Gurbanguly Berdymukhammedov that their countries will supply the pan-European Nabucco gas pipeline, which will carry gas from Central Asia to the EU via Georgia and Turkey.
“Azerbaijan and Turkmenistan are key partners for the European Union in the framework of the Eastern Partnership and the Central Asia Strategy, with whom we want to deepen our relations. We share a strong interest in the long-term security and diversification of our energy supply and demand. I will therefore make the case for the realisation of the Southern Gas Corridor, which will directly bring gas from the Caspian region to European consumers. I am sure that together we will create the necessary conditions for this strategic initiative to take place,” Barroso said in a press release published on Tuesday. In Baku on 13 January, he is due to sign a joint statement with President Aliyev on the establishment of the Southern Corridor. In Ashkabad, he will seek greater clarity on the commitment of the Turkmen authorities, who are increasingly sending mixed signals on Turkmenistan's preparedness to supply Nabucco.
Despite doubts persisting over the viability of the 3,000-kilometre long gas pipeline with its capacity of 31 billion cubic metres of gas per year, the Commission president is sticking to his guns: the Southern Corridor is one of the EU's major options for ensuring diversification of its gas sources and supply routes (currently, gas is supplied essentially by Norway, North Africa and Russia) and reducing dependency on Russia. The Commission is also continuing its efforts to open the Southern Corridor, which also comprises other infrastructure projects, such as the Trans-Adriatic pipeline and the Italy-Turkey-Greece interconnector, and to create “physical links” between the EU and the Caspian region, Commission sources close to the issue said on Tuesday. At this point, no sales contract for gas to supply Nabucco has been signed, but the consortium partners - ÖMV of Austria, MOL of Hungary, Transgaz of Romania, Bulgargaz of Bulgaria, Botas of Turkey and RWE of Germany, which each hold 16.7% shares in the project - are in negotiations with Azerbaijan, Turkmenistan and Iraq. Initially, gas will come from the Azeri Shah Deniz gas field, where European companies involved in Nabucco are in competition with Russian gas giant Gazprom.
The Commission is convinced that Azerbaijan and Turkmenistan have every interest in selling gas to the EU to ensure their security of demand, which is currently being assured by Russia and China. The two Central Asian producers need to have more than one customer, especially since the EU is prepared to buy their gas at a higher price than that set by Russia. “Turkmenistan, which has traditionally been dependent on a route through Russia, which buys Turkmen gas at low cost, wants a way out. Azerbaijan is faced with the geographical obstacle of the Caucasus if it wants to sell more gas to Russia,” the Commission said on Tuesday. The promoters of the Southern Corridor and Nabucco, led by Barroso might very well see their hopes strengthened by the end of the week. (E.H./transl.rt)