Azernews.Az

By Sara Rajabova

The Contract of the Century has been a launching pad for Azerbaijan. It is based on common economic interests of Azerbaijan and Turkey as well as Azerbaijan and the West.

Energy policy research fellow at Poland's Centre for Eastern Studies, Agata Loskot-Strachota made the remarks in an interview with Day.Az website on Contract of the Century's importance for Azerbaijan, as well as its European partners.

"It certainly has been of key importance for Azerbaijan. It was the first step linking Azerbaijan to the world and inviting world to Azerbaijan. It made possible the construction of Baku-Tbilisi -Ceyhan oil pipeline, now key oil export pipeline passing via Turkish territory (as the one from Iraq is not operating all the time or at full capacity). It also paved the way for Azerbaijani oil export - the key source of Azerbaijan's incomes," Loskot-Strachota said.

The 20th anniversary of signing of the 'Contract of the Century', a project of developing the Azeri-Chirag-Gunashli block of fields was marked on September 20.

Also, a groundbreaking ceremony of launching the project to deliver the Azerbaijani gas via neighboring Georgia and Turkey to Europe was held in Baku on the same day.

Loskot-Strachota noted that Contract of the Century was at the time an exceptional project in the post soviet-area and constituted a clear signal that the post-soviet country may chose its own way in the energy system development or international relations.

"It created a solid base for closer, long-term cooperation between Azerbaijan and Western oil companies, European Union and the United States. But it was also a beginning for new Azerbaijan - more self-confident and determined in pursuing its goals," the expert said.

Speaking about Azerbaijan's role in the world's affairs, she said Azerbaijan is for the moment the only country in the Caspian region capable of supplying 'new' gas to the EU.

"It has already started the supplying via interconnection Turkey-Greece. Today there is a great chance that TANAP and TAP pipelines could be built soon and Azerbaijan can turn into an important supplier to the Balkans and Italy. Supplies to Balkan countries would enable diversification of their supplies sources (as now they remain heavily dependent on imports from Russia), as well as supplies to Italy would contribute to diversity of sources and development of a gas trade hub in Italy," Loskot-Strachota said.

She also went on to note that probably Azerbaijan will play the most important role in Turkey, as majority of Azerbaijani gas would go there at least in the short and middle term.

Loskot-Strachota further said Contract of the Century indeed linked Azerbaijan to the world and made its international and economic relations much more diversified.

"It started a process which has been continuing since then. In energy field, Azerbaijan is already a well-known oil exporter and is set to become an increasingly important exporter of gas. So, its meaning for customers is growing. At the same time, we live in a challenging time when it comes to European gas relations," the expert said.

She further noted that due to Ukrainian conflict, situation is quite dynamic and uncertain and it presents a great opportunity to Azerbaijan: as its role as alternative producer of gas is growing.

"But it may also be a challenge as Russia is seeking alternative for Ukrainian routes to the EU, and route via Turkey might be one of the considered options. That would change a bit present picture and both Turkey and Azerbaijan's plans," Loskot-Strachota said.