BAKU IN SEARCH OF ALTERNATIVE ROUTES

The Messenger
Oct 21 2009
Georgia

The prospect of the Turkish-Armenian border opening before the Karabakh
conflict is resolved has forced the Azeri side to explore new ways
of exporting its gas, Azeri President Ilham Aliyev has stated at a
Government session.

Baku has started openly discussing certain issues which have not been
discussed before. The transit of natural gas through Turkey costs
Azerbaijan much more than the ordinary market price and having to make
these payments has delayed the further exploration of the second stage
of the Shah Deniz oil field. Aliyev also mentioned that Azerbaijan
sells its natural gas at less than market price due to the very special
relations between Turkey and Azerbaijan, but current developments
and the signing of an agreement establishing diplomatic relations
and opening the borders between Turkey and Armenia without first
resolving the Karabakh issue has forced Baku to take adequate measures.

Due to such developments Azerbaijan has signed certain agreements
with Russia’s Gazprom. Furthermore Aliyev made the rather sensational
statement that Azeri gas could be sent to European countries without
going through Turkey, meaning that the NABUCCO project would be
frustrated for the time being at least.

The question is, who will benefit from such a development? It is
unlikely that Ankara will gain much if Baku makes any new moves. The
immediate winner in this situation is Russia, because if NABUCCO is
frustrated Moscow will remain the sole supplier of natural gas to
European countries.

From: Emil Lazarian | Ararat NewsPress