BAKU AND ANKARA LIKELY TO FAIL "SOUTH CORRIDOR" : MORNINGSTAR

News.am
11:55 / 01/29/2010

Further delays in agreement between Turkey and Azerbaijan on gas
supply terms from the Shah Deniz field might shut the door upon
opportunities for South Corridor project, Richard Morningstar U.S.

Special Envoy for Eurasian Energy told the journalists yesterday,
Jan. 28.

He called disappointing the fact that no accord on gas supplies is
reached so far. Morningstar underlined that both states are U.S.

friends and the country does not back any negotiating party. According
to him, U.S. supports the idea of new corridor construction for gas
supply from Caspian region to Europe.

South energy corridor might unite Nabucco and gas main between Turkey,
Italy and Greece. Both directions are significant from strategy
viewpoint for diversification of gas resources and opening of new
energy routes to Europe, Morningstar stated. The official outlined
that south energy corridor will yield profit to the Caucasian and
Central Asian countries, as well as create long-term partnership
based on mutual interests with Europe.

According to Morningstar, presently Washington’s attention is focused
on two directions: Turkey-Azerbaijan agreement on Shah Deniz field and
provision of gas from the countries of Central Asia and Middle East.

South corridor concept will appear nonviable if countries getting major
preferences from its realization do not reach commercially rational and
mutually beneficial agreement on gas transportation terms, Morningstar
said, excluding Iran’s possible participation in the project.