Gas pipeline to link Nakhchivan with Turkish province
Turkey`s Igdir province and the Nakhchivan
Autonomous Republic of Azerbaijan have signed a memorandum on
building a gas pipeline, Turkish Minister of Energy and Natural
Resources Taner Yildiz has said.
According to him, the sides will further ink an agreement on supplying 500 million cubic meters of gas a year from Igdir to Nakhchivan. Turkey`s BOTAS and Azerbaijan`s state energy firm SOCAR are due to discuss technical, commercial and legal details of the project. Experts of the two companies are scheduled to meet in Ankara in September.
Yildiz on Saturday visited Nakhchivan where he met with SOCAR President Rovnag Abdullayev. Abdullayev said Azerbaijan and Turkey are about to reach final results in negotiating gas transit fees.
Gas to be produced in the coming years during Phase 2 of developing Shahdaniz, Azerbaijan`s largest gas field in the Caspian Sea, will be delivered to Europe through Turkish territory.
Shahdaniz launched production in 2006. The field holds estimated reserves of 2 trillion cubic meters of gas, according to official figures. Phase 2 of Shahdaniz development is scheduled to begin in 2012-2013.
Evaluating the outcomes of his visit to Nakhchivan, the Turkish energy minister told reporters that it aimed to discuss details of the gas deal reached with Azerbaijan as well as to become familiar with the autonomous republic and study its needs.
Economist Ilham Shaban, who heads the Oil Research Fund, said the fuel to be delivered to Nakhchivan is, in fact, Azeri gas.
"This gas, being transported to Turkey from Azerbaijan, will now be supplied to Nakhchivan from Igdir," said Shaban. "Due to the extensive length of the pipeline and relevant transit costs, the price for it will considerably exceed regional levels. Just imagine, the gas earmarked for Nakhchivan has to cross the entire territory of Azerbaijan - 500 km, that of Georgia - 280 km, and that of Turkey - over 500 km. This requires hefty expenses, therefore, this project is deemed unviable."
Shaban noted that, since officials are not commenting or providing any information on the matter, it is premature and extremely difficult to make any predictions at this point.
"The feasibility study of the project, sources of supplies, price - no official information has been provided about all that [so far]. But one thing can be asserted now - though this is expensive, there is no other option," the expert said.
According to him, the sides will further ink an agreement on supplying 500 million cubic meters of gas a year from Igdir to Nakhchivan. Turkey`s BOTAS and Azerbaijan`s state energy firm SOCAR are due to discuss technical, commercial and legal details of the project. Experts of the two companies are scheduled to meet in Ankara in September.
Yildiz on Saturday visited Nakhchivan where he met with SOCAR President Rovnag Abdullayev. Abdullayev said Azerbaijan and Turkey are about to reach final results in negotiating gas transit fees.
Gas to be produced in the coming years during Phase 2 of developing Shahdaniz, Azerbaijan`s largest gas field in the Caspian Sea, will be delivered to Europe through Turkish territory.
Shahdaniz launched production in 2006. The field holds estimated reserves of 2 trillion cubic meters of gas, according to official figures. Phase 2 of Shahdaniz development is scheduled to begin in 2012-2013.
Evaluating the outcomes of his visit to Nakhchivan, the Turkish energy minister told reporters that it aimed to discuss details of the gas deal reached with Azerbaijan as well as to become familiar with the autonomous republic and study its needs.
Economist Ilham Shaban, who heads the Oil Research Fund, said the fuel to be delivered to Nakhchivan is, in fact, Azeri gas.
"This gas, being transported to Turkey from Azerbaijan, will now be supplied to Nakhchivan from Igdir," said Shaban. "Due to the extensive length of the pipeline and relevant transit costs, the price for it will considerably exceed regional levels. Just imagine, the gas earmarked for Nakhchivan has to cross the entire territory of Azerbaijan - 500 km, that of Georgia - 280 km, and that of Turkey - over 500 km. This requires hefty expenses, therefore, this project is deemed unviable."
Shaban noted that, since officials are not commenting or providing any information on the matter, it is premature and extremely difficult to make any predictions at this point.
"The feasibility study of the project, sources of supplies, price - no official information has been provided about all that [so far]. But one thing can be asserted now - though this is expensive, there is no other option," the expert said.
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