Azernews.Az

By Aynur Jafarova

Azerbaijani gas is not a big competitor for the Russian gas at the European market.

The remarks were made by Vice President of Azerbaijan's state energy company SOCAR Elshad Nasirov.

The volumes of Azerbaijan's gas supply to Europe will not be substantial for the moment, he explained.

"We think that our deliveries of additional or alternative gas to Europe will be a step in the diversification of supplies to the European Union, and we will fill the gap between gas supply and demand until our gas will be ready to be supplied to Europe," Nasirov said in an interview with CNN.

He believes Azerbaijan shouldn't use companies like SOCAR or the gas production as a tool against others.

"Our goal is to diversify gas supplies to the European Union," Nasirov said. "Azerbaijan is interested in becoming a reliable energy partner for Europe. At the same time, we are ready to supply gas at shorter destinations to our neighbors -Georgia, Russia, and Turkey."

Touching on the price of the supplied gas, SOCAR official said they are based on market prices.

"If gas deliveries to Europe is profitable enough, we will provide additional volumes of gas to the same countries," Nasirov stressed.

The gas which will be produced at the second stage of Azerbaijan's Shah Deniz field development will be the main source of the Southern Gas Corridor, which envisages the transportation of the Caspian gas to European markets.

The Shah Deniz consortium announced the selection of TAP as the main route for transporting its gas to Europe in late June. Another pipeline which was vying for Azerbaijan's gas transportation to Europe was Nabucco West.

Azerbaijan agreed to sell over 10 billion cubic meters of natural gas a year from the second phase of its Shah Deniz development to nine companies in the European Union in September 2013.

The contracts were signed for 25 years between SOCAR and the European utilities, including Axpo Trading AG, Bulgargaz EAD, Depa, Gas Natural Fenosa, Hera Trading Srl, Shell Energy Europe, Enel SpA, E.ON SE, and GDF Suez SA.

The initial capacity of TAP will amount to 10 billion cubic meters per annum with the possibility of expanding to 20 billion cubic meters per annum. The TAP's construction project is planned to start in 2015.