DECLINE IN NABUCCO’S RELEVANCE WEAKENS REGIONAL ROLE OF AZERBAIJAN

PanARMENIAN.Net
18.01.2010 18:33 GMT+04:00

/PanARMENIAN.Net/ Upon Russia’s purchasing gas stocks of Central Asian
region, specifically Turkmenistan, the relevance of Nabucco project,
bypassing Russia, declined, RPA parliamentary group member Gagik
Minasyan said.

As he told a news conference in Yerevan, decline in Nabucco’s relevance
is quite natural, as Azerbaijan’s gas resources can’t fill the gas
pipe, and Central Asian stocks are already purchased by Russia. "Thus,
decline in Nabucco’s relevance weakens regional role of Azerbaijan,"
the parliamentarian noted.

RPA representative also noted that after the possible victory of
candidate Victor Yanukochich in Ukraine’s presidential elections,
gas dispute between Ukraine and Russia will be settled. "Which will,
in turn, decrease the relevance of Russian "Blue stream" pipeline,
as gas export to Europe through Ukraine is less expensive," the MP
noted, adding that non-implementation of "Blue stream" project will
automatically decrease the role of Turkey, as a transit country for
transportation of Russian gas to Europe.

The Nabucco pipeline is a planned natural gas pipeline from Turkey to
Baumgarten an der March in Austria diversifying the current natural
gas suppliers and delivery routes for Europe. The pipeline attempts to
lessen European dependence on Russian energy. The project is backed
by several European Union states and the United States and is seen as
rival to the planned Gazprom-led South Stream pipeline project. At the
same time there are some doubts concerning viability of supplies. The
main supplier is expected to be Azerbaijan in cooperation with
Turkmenistan, Iraq and Egypt.

Preparations for the Nabucco project started in 2002 and the
intergovernmental agreement between Turkey, Romania, Bulgaria, Hungary
and Austria was signedon 13 July 2009. The project is developed by
the consortium of six companies. The pipeline is expected to be
operational by 2015 and it will carry 31 billion cubic meters of
natural gas per year.

In 2006, Gazprom proposed an alternative project, in competition with
the Nabucco Pipeline, that would involve constructing a second section
of the Blue Stream pipeline beneath the Black Sea to Turkey, and
extending this up through Bulgaria and Serbia to western Hungary. In
2007, the South Stream project through Bulgaria, Serbia, Hungary and
Slovenia to Austria and Italy was proposed. It is seen as a rival to
the Nabucco pipeline. Ukraine has proposed the White Stream pipeline,
connecting Georgia to the Ukrainian gas transport network. Also the
Trans Adriatic Pipeline and the Interconnector Turkey-Greece-Italy
projects are seen as competing projects.