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news.az, Azerbaijan
June 9 2010
'The failure to reach an agreement was a major problem in past two years'
Wed 09 June 2010 | 11:05 GMT Text size:
Natik Aliyev, Taner Yildiz News.Az interviews Adnan Vatansever, Senior
Associate, Energy and Climate Program, Carnegie Endowment for
International Peace.
Azerbaijan and Turkey have signed a package of agreements on gas
supplies to Turkey. How would you comment on this agreement?
The failure to reach an agreement was a major problem in the past two
years. So, this must be good news for both sides.
The Nabucco Gas Pipeline consortium has welcomed the agreements signed
by Azerbaijan and Turkey on terms for the transit of gas via Turkey to
Europe. Do you think that all problems about Nabucco project will be
solved?
The disagreements on the details of gas contracts with Azerbaijan was
a major obstacle. So, this is a major positive step. But, there are
several problems remaining. First, the relations between Ankara and
Baku may experience new tensions, if Ankara decides to renew its
"rapprochement" with Armenia. Currently, its prospects have been left
unclear. Second, realizing Nabucco requires much more efforts than a
gas deal between Turkey and Azerbaijan. Questions about filling the
full capacity of the pipeline need to be resolved. Also parties will
need to work on the details of sales agreements between suppliers and
buyers.
Russian Prime-minister Putin commenting this agreement said that there
is no competition between the Azerbaijani and Russian supplies to
Turkey. Is it really so or Russia may worry about enhancing of
Azerbaijan's role as a gas supplier?
Nabucco and Russian gas are competing for the same market -
Europe/Turkey, and demand growth in both markets has become uncertain.
One may probably say that there is "space" for both players in these
markets, but only in the longer-run. In the short and medium-term,
they will compete for the same market.
What consequences could be after Turkey's decision to freeze energy
cooperation with Israel?
It will hardly have any significant consequences. This is because the
economic viability of the proposed projects was highly questionable.
Moreover, Putin has also indicated that Israel might be able to
develop its own gas reserves that will deem the gas export projects
via Turkey unnecessary.
Do you think that political and energy problems between Turkey and
Israel may harm Azerbaijan, the main Turkish partner in energy
delivers to the world market?
Not really, as Turkey hopes to maintain its transit role for
Azerbaijani oil and gas.
Aliyah Fridman
News.Az
From: A. Papazian
June 9 2010
'The failure to reach an agreement was a major problem in past two years'
Wed 09 June 2010 | 11:05 GMT Text size:
Natik Aliyev, Taner Yildiz News.Az interviews Adnan Vatansever, Senior
Associate, Energy and Climate Program, Carnegie Endowment for
International Peace.
Azerbaijan and Turkey have signed a package of agreements on gas
supplies to Turkey. How would you comment on this agreement?
The failure to reach an agreement was a major problem in the past two
years. So, this must be good news for both sides.
The Nabucco Gas Pipeline consortium has welcomed the agreements signed
by Azerbaijan and Turkey on terms for the transit of gas via Turkey to
Europe. Do you think that all problems about Nabucco project will be
solved?
The disagreements on the details of gas contracts with Azerbaijan was
a major obstacle. So, this is a major positive step. But, there are
several problems remaining. First, the relations between Ankara and
Baku may experience new tensions, if Ankara decides to renew its
"rapprochement" with Armenia. Currently, its prospects have been left
unclear. Second, realizing Nabucco requires much more efforts than a
gas deal between Turkey and Azerbaijan. Questions about filling the
full capacity of the pipeline need to be resolved. Also parties will
need to work on the details of sales agreements between suppliers and
buyers.
Russian Prime-minister Putin commenting this agreement said that there
is no competition between the Azerbaijani and Russian supplies to
Turkey. Is it really so or Russia may worry about enhancing of
Azerbaijan's role as a gas supplier?
Nabucco and Russian gas are competing for the same market -
Europe/Turkey, and demand growth in both markets has become uncertain.
One may probably say that there is "space" for both players in these
markets, but only in the longer-run. In the short and medium-term,
they will compete for the same market.
What consequences could be after Turkey's decision to freeze energy
cooperation with Israel?
It will hardly have any significant consequences. This is because the
economic viability of the proposed projects was highly questionable.
Moreover, Putin has also indicated that Israel might be able to
develop its own gas reserves that will deem the gas export projects
via Turkey unnecessary.
Do you think that political and energy problems between Turkey and
Israel may harm Azerbaijan, the main Turkish partner in energy
delivers to the world market?
Not really, as Turkey hopes to maintain its transit role for
Azerbaijani oil and gas.
Aliyah Fridman
News.Az
From: A. Papazian