Azernews.Az

By Elena Kosolapova

The European Union considers Azerbaijan a reliable partner in ensuring its energy security, the EU representatives said.

The Forum of Young Leaders, organized by the European Parliament under the EU Eastern Partnership, discussed this issue in Brussels on December 10 .

The issues of energy security and diversification of energy supplies are of primary importance for Europe given the geopolitical situation in the region and the world, while the forum discussions put significant stress on it.

Europe needs to reduce its energy dependence on Russia and is conducting a search for new alternative sources of energy supplies, according to the EU representatives.

"Implementation of these measures will further relieve Europe of its dependence on the decisions and attitudes of Russia," the EU representatives said.

The forum also highlighted the concern of the EU over recent agreements between Russia and Turkey on the possibility of Russian gas supplies to Europe via Turkey.

According to the EU representatives, a gas pipeline passing through Ukraine is enough for Europe to receive gas from Russia and it is not interested in the construction of new pipelines to transport the Russian gas

The forum participants expressed their hope that if the talks with Iran on its nuclear program will be fruitful, then the natural gas from Iran and Iraq can be supplied to Europe via the Southern Gas Corridor.

The Southern Gas Corridor will allow Europe to diversify its hydrocarbon supply sources and strengthen energy security, while pave the way for Azerbaijan to obtain a new market in Europe.

On December 17, 2013, a final investment decision was made on the Stage 2 of the Shah Deniz offshore gas and condensate field's development. The gas produced at this field will be firstly delivered to the European market, being at nearly ten billion cubic meters of overall volume. Around six billion cubic meters will be annually supplied to Turkey.

The gas to be produced as part of the Stage 2 will be exported to Turkey and the European markets following the expansion of the South Caucasus Pipeline, as well as construction of the Trans-Anatolian Gas Pipeline (TANAP) and the Trans-Adriatic Pipeline (TAP), which are the part of the Southern Gas Corridor project alongside with Shah Deniz-2.

The cost of the work on all four elements of this corridor is estimated to stand at $50 billion, according to the preliminary data.

The contract for development of the Shah Deniz offshore field, which has a proven reserve of 1.2 trillion cubic meters of gas, was signed on June 4, 1996.

The shareholders are: SOCAR with 16.7 percent, BP with 28.8 percent, Statoil with 15.5 percent, NICO with 10 percent, Total with 10 percent, Lukoil with 10 percent and TPAO with 9 percent.