Friday, January 14, 2011

Azerbaijan and EU Sign Natural Gas Agreement

Azerbaijan and the EU have agreed to transport Azerbaijan’s natural gas supply from the Caspian basin to Europe via pipeline. The joint declaration on the “Southern Gas Corridor” (SGC) was signed by Azeri President Ilham Aliyev and the President of the European Commission José Manuel Durão Barroso. As part of the deal, the European Union opens its markets to Azerbaijan while Azerbaijan sends “substantial volume” of gas to the EU.

The EU has been seeking an alternative gas pipelines connecting Russia to the EU. In recent years regional conflicts have disrupted gas distribution to Europe. The SGC is the EU’s alternative solution.

"This is a major breakthrough. This agreement confirms Europe's direct access to gas from the Caspian basin, thus enabling the realization of the Southern Corridor. This new supply route will enhance the energy security of European consumers and businesses," said Barroso.

The SGC is yet to be completed. The Nabucco pipeline could be the obvious choice. The proposed 3,300-kilometer project, backed by UE and the US, would link Erzurum in Turkey to Baumgarten an der March in Austria. The consortium that would build the Nabucco was awaiting an agreement to luck up sufficient gas supplies for the pipeline. Today’s agreement would provide the supplies.

Now Azerbaijan has to choose among proposed pipeline projects to transport its natural gas to Europe. Aside from Nabucco, there is the “South Stream” pipeline, backed by Russia, transporting natural gas from the Black Sea port of Beregovaya to Bulgaria and on to Italy and Austria. If it chosses Nabucco, as expected, the construction of the $11-billion pipeline could start immediately and be completed by 2015.

The SGC is the second major agreement in as many months involving the transport of Caspian basin supplies to major world markets. Turkmenistan, Afghanistan, Pakistan and India last month announced their agreement to build TAPI pipeline, transporting Turkmen natural gas to India.

Iran, sitting on the world’s second largest natural gas reserves, has significantly been left out of both major agreements.

7 comments:

Anonymous said...

So what can IRAN do under this circumstance to export it's natural gas?

Nader Uskowi said...

Seems to me the development of the natural gas resources is not on top of the Iranian government’s agenda. The government is so consumed by its uranium enrichment program that the global economic concerns are secondary.

Anonymous said...

sooner or later, Azerbayjan shall discover its emancipation path and like Tunnis will want to get rid of the Alioff Dynasty in its country.

Iran should wait till the apple falls,Like Afghanistan , like Iraq.

Bless Iran

Illuminati

Nader Uskowi said...

Dear Illuminati,

I always enjoy your comments, but I also believe we need to live in present and not just in future! The problem with comments like Iran will be this and will be that is they are more like slogans than real solutions for problems facing the country now. Iran needs to have a comprehensive plan of development, which in this global age would certainly mean concrete plans on how to integrate its economy with the major economies of the globe. No two ways about it. I believe the leaders of the country are too much invested in and consumed by their uranium enrichment program, ignoring the real issues of integration into the global economy.

Bless Iran.
Nader

Anonymous said...

Dar Nader,
Thank you for your kindness,

However ;)

I think Iranians can walk and chew a gum at the same time.
meaning,
they can topple Govt.'s in Lebanon, help form one in Iraq, starve Nato forces (fuel) in Afghanistan, and wait for Shia Azerbaijan to realize they are being screwed by Oil companies
and look for help to Big Brother Iran for guidance.

Incidentally all while they are preoccupied with their fuel rods.

The thing is Natural gas fields can be cultivated at anytimes, and sometimes keeping a low profile in some fields, avoids them being sabotaged by enemies...

I could go on and on I know you would enjoy it but I want to read the rest of your site :)

Bless Iran and all Irani9ans across the Globe except the MKO

Illuminati

Nader Uskowi said...

Dear Illuminati,

However :)

All your examples are good for other peoples, and not necessarily for the Iranians. I thought the role of the Iranian leaders was above all developing their own country!

Thanks again and please keep reading this blog and please post your comments. They are as intelligent as well meaning.

Anonymous said...

Nader Jan,

Irans security is now being defended at the borders of Israel and Hindukosh... The red sea and deep in Africa... in the virtual world (you and me) and beyond.

Thing big gain big. ;)

Bless Iran

Illuminati