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Rovnag Abdullayev: â€œAzerbaijanâ€™s option on gas export route will depend on offered transportation tariffsâ€

26 May 2011 12:32 (UTC +04:00)

According to him, the main issue in gas business is related on transportation tariffs: â€œAfter solution of this issue, weâ€™ll concretize our works with the purchasers. We can not finish the talks due to not solution of tariff issuesâ€.

He noted that, SOCAR conducted negotiations with participants on tariffs to adopt decision which direction will be chosen: â€œWe try to define the tariffs and choose the route, until October 1â€.

Remind that, Nabucco is the new gas bridge from Asia to Europe and the flagship project in the Southern Corridor. It will be a pipeline to connect the worldâ€™s richest gas regions - the Caspian region, Middle East and Egypt - to the European consumer markets.

The pipeline will link the Eastern border of Turkey, to Baumgarten in Austria - one of the most important gas turntables in Central Europe - via Bulgaria, Romania and Hungary. When completed the 3,900 km pipelineâ€™s annual capacity will be 31 bcm. The construction of the pipeline is supported by the 2009 Intergovernmental Agreement signed in Ankara in July 2009, which harmonises the legal framework and grants stable and equal transport conditions for all partners and customers.

It is widely acknowledged that Central and Western Europe will face a considerable shortfall in its energy supply over the next two decades, with gas prices expected to increase as domestic production declines. Consequently, it is crucial that new infrastructure be established to meet further demand and ensure both security of supply and supply diversification.

The main pipeline will be built in one phase from Ankara to Baumgarten. Construction will start in 2013, first gas will flow in 2017.