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Caspian-Mediterranean Oil Pipeline Launched In Baku

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  • Caspian-Mediterranean Oil Pipeline Launched In Baku

    Radio Free Europe, Czech Republic
    May 25 2005

    Caspian-Mediterranean Oil Pipeline Launched In Baku
    By Jean-Christophe Peuch

    Work on BTC pipeline near Baku two years ago

    Prague, 25 May 2005 (RFE/RL) -- The 1,760-kilometer
    Baku-Tbilisi-Ceyhan pipeline to transport crude oil extracted from
    the Caspian Sea shelf to the Mediterranean Sea basin was inaugurated
    today near Azerbaijan's capital Baku.


    The leaders of Azerbaijan, Georgia, Turkey, and Kazakhstan joined oil
    executives from nearly 40 countries at the opening ceremony for the
    line, which bypasses Russia.

    Addressing world energy executives at the Sangacal oil terminal, some
    40 kilometers south of Baku, the Azerbaijani, Turkish, Georgian, and
    Kazakh leaders spoke with one voice to underline the importance of
    the new transport route.

    Azerbaijan's main oil-export conduit will connect Baku to the Turkish
    Mediterranean port of Ceyhan via the Georgian capital Tbilisi. It
    will be coupled with a natural-gas-export pipeline linking Baku,
    Tbilisi, and Turkey's eastern Anatolian city of Erzurum in 2006.

    Construction of the U.S.-sponsored Baku-Tbilisi-Ceyhan pipeline (BTC)
    started in 2001, and its final cost totaled well over the $3 billion
    originally planned.

    Presidents Eduard Shevardnadze of Georgia and Heidar Aliyev of
    Azerbaijan were the two main regional architects of the BTC.

    Yet neither of the two leaders attended today's ceremony.
    Shevardnadze was deposed by peaceful opposition-led street protests
    in November 2003, and Heidar Aliyev -- after whom the Azerbaijani
    section of the BTC was renamed -- died nearly two years ago to be
    succeeded by his son, Ilham.

    Addressing reporters in Baku yesterday, Georgian President Mikheil
    Saakashvili said both the BTC and its sister gas pipeline were of
    utmost importance for his country -- which until now has been heavily
    dependent on Russia for its energy supplies.

    "In practical terms, [BTC] and the [Baku-Tbilisi-Erzurum] gas
    pipeline are extremely important projects for Georgia," Saakashvili
    said. "When the gas pipeline is launched, the issue of Georgia's
    energy independence will be finally solved. Georgia will no longer
    depend on a single source for its energy supplies. This is the most
    important guarantor of our energy independence."

    Azerbaijani President Ilham Aliyev in turn thanked Azerbaijan's
    neighbors for contributing to making the immense project a reality.

    "[It is the input of] regional cooperation and mutual understanding
    that made this seemingly unrealistic project -- the world's largest
    energy project, the Baku-Tbilisi-Ceyhan pipeline -- come into life,"
    Aliyev said.

    Turkish President Ahmet Necdet Sezer said today that he is confident
    the new pipeline will bring stability and economic gains to the
    entire Southern Caucasus region. [For analysts' opinions, click
    here.]

    "The Baku-Tbilisi-Ceyhan pipeline, which is the most important
    element of the East-West transport corridor -- also known as the Silk
    Road of the 21st century -- makes an important contribution in
    enhancing the stability and economic well-being of the entire
    region," Sezer said.

    The BTC stretches 1,760 kilometers, including 440 kilometers through
    Azerbaijan and 250 kilometers through Georgia. The pipeline is
    designed to carry oil extracted from Azerbaijan's sector of the
    Caspian Sea by a BP-led international consortium comprising 11
    companies.

    It will take several months to fill the conduit.

    Turkish Energy and Natural Resources Minister Hilmi Guler told the
    Anadolu news agency today that the first barrel of oil will not reach
    its final destination until September.

    BTC will be running at full capacity only in 2009, when production
    reaches its peak in Azerbaijan. The pipeline will then carry an
    expected 1 million barrels of oil per day.

    Kazakhstan's President Nursultan Nazarbaev announced plans yesterday
    to export part of its production through BTC under a scheme that
    would involve the construction of an underwater pipeline linking the
    Kazakh city port of Aktau to Baku.

    Aliyev's chief of staff Ramiz Mehdiyev said today that experts are
    still working on a final document that should seal Kazakhstan's
    participation in the project.

    Also today, the presidents of Azerbaijan, Turkey, and Georgia signed
    a joint declaration reaffirming their commitment to build a railway
    connection between the Turkish city of Kars, near the Armenian
    border, and Baku.

    The line will go through Georgia's predominantly Armenian region of
    Samtskhe-Javakheti, and then on to Tbilisi.
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