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By Aynur Karimova

Azerbaijan, which has become an important energy player, has created opportunities to diversify export routes not only for itself, but also the entire region.

This remark was made by Azerbaijan's Energy Minister, Natig Aliyev on June 3, within the framework of the Caspian Oil & Gas Conference held in Baku.

“Gas from Turkmenistan, Iran, Iraq, as well as from Israel and Cyprus can be connected to the Southern Gas Corridor,” he noted. “The extensive work done by Azerbaijan stands behind all of this.”

Aliyev said that today Europe is very concerned about its energy security. “In particular, this was affected by tense relations between Ukraine and Russia, high dependence on [gas] supplies from Russia and the decline in production in the North Sea,” he said. “Europe imports about 90 percent of oil, 60 percent of gas and 42 percent of coal.”

For this reason, Azerbaijan has attracted the attention of the West. “Azerbaijan is also a new source of energy for Europe, and it offers Europe new routes."

Not only Azerbaijani gas, but also gas from Central Asia and the Middle East can be supplied via these routes. “Thus, Azerbaijan can act not only as a source of resources, but also as a transit country."

Aliyev believes that Azerbaijan is becoming one of the world's key players in the energy sector due to several factors.

“Azerbaijan has large reserves of resources. In the coming years we will try to maintain the level of oil production and double gas production, which will make it possible to significantly increase our export potential,” he said. "In addition, all necessary infrastructures have been created in Azerbaijan, and a new program of gas processing will soon be implemented. Also, Azerbaijan has reached a level when the country can implement large-scale projects at the expense of its own resources.”

In his remarks Janusz Piechocinski, the deputy prime minister and economy minister of Poland, said Azerbaijan is Europe’s indispensable partner in power engineering, in particular in South-Eastern Europe, including Poland.

“Azerbaijan is a reliable partner which has invested in the construction of new gas pipelines,” he said. “Azerbaijan's efforts in this area must be supported by Europe.”

He said that Azerbaijan has put forward a well-thought-out proposal for energy supply to the South-Eastern Europe.

"I wish success to Azerbaijan, as this will be the success of Poland and the EU," he said.

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

Ian Bradshaw, the managing director of TAP, in turn, said the Trans-Adriatic Pipeline project continues to progress on schedule, with the first gas supply to reach Europe in 2020.

"TAP is a new route for delivering Caspian gas to Europe," he said adding that the project aligned with the EU key energy objectives.

Bradshaw believes that award of major procurement contracts is expected by the end of 2015. This pipeline is also committed to transport gas with zero harm to the environment, he added.

Iraq, Azerbaijan to implement joint projects

Later, commenting on a Memorandum of Understanding signed between Azerbaijan and Iraq on cooperation in the oil and gas sector, Energy Minister, Aliyev told journalists that Azerbaijan's state energy company SOCAR and Iraqi National Oil Company are establishing a working group for the implementation of joint projects.

"The matter rests in making investments in Iraq,” he said. “We intend to choose one of the projects, an oil field there. We will work on it."

He said that Iraqi companies were invited to participate in the implementation of projects in Azerbaijan. "I am confident that this cooperation will be productive."

Azerbaijan and Iraq signed a MoU on June 2. Iraqi Oil Minister, Adil Abdul-Mahdi told Trend that on the basis of this document, the companies from both countries can establish joint ventures on the territories of both countries, as well as in third countries.

Turkish Stream not rival to TANAP

Deputy Minister of Energy and Natural Resources of Turkey Sefa Sadik Aytekin believes the Turkish Stream project initiated by Russia is not a rival of the Trans-Anatolian Gas Pipeline project.

Speaking on the sidelines of the conference he told Trend that the Turkish Stream, which is the precursor of the South Stream differs from it.

"While in case of the South Stream additional volumes of Russian gas to Europe were considered, with the Turkish Stream there are no plans for additional gas supplies," he said.

Regarding the Turkish Stream project, the issue is that Russia intends to sell gas to Europe not through Ukraine, but through Turkey from 2019, Aytekin said.

“Taking this into account, one can say with confidence that theTurkish Stream is neither an alternative, nor a rival to TANAP,” Turkish deputy minister said.

The TANAP project envisages the transportation of gas of Azerbaijan’s Shah Deniz field from the Georgian-Turkish border to the western borders of Turkey. TANAP’s initial capacity is expected to reach 16 billion cubic meters of gas per year. Around six billion cubic meters of this gas will be delivered to Turkey and the rest of the volume to Europe.

Aytekin said that currently Ankara and Moscow are holding talks on the implementation of the Turkish Stream project which has many unresolved technical issues.

“As long as they are not resolved, we can’t say that the sides have reached a final agreement,” Aytekin added.

The Turkish Stream envisages transportation of gas from Russia to Turkey through the Black Sea. Russia’s Gazprom Company and Turkish BOTAS signed a Memorandum of Understanding on construction of the pipeline on December 1, 2014.

The pipeline’s pumping capacity will be 63 billion cubic meters. The 1,100 kilometer-gas pipeline will consist of four branches and supply 47 billion cubic meters of gas to the Turkish-Greek border.

A gas hub is expected to be created on the border between Turkey and Greece. The EU countries must independently create their own gas transportation facilities to receive this gas in their territories.

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Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova

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