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Sidar Global Advisors: â€œThe signing of the gas transit agreement between Turkey and Azerbaijan is, nevertheless, a significant event for South Corridor projectâ€

27 October 2011 11:08 (UTC +04:00)

â€œThe signing of the gas transit agreement in Izmir is, nevertheless, a significant eventâ€, mentioned the analysts, APAâ€™s US correspondent reports.

â€œIt seems that in some areas progress has been made since Turkey and Azerbaijan signed preliminary agreements in June 2010 over gas pricing and transitâ€, say the authors adding, however, no further mention has been made of Turkey re-exporting gas from the second stage of production at Shah Deniz.

Although details have not been publicized, SGA believes that the signing of the long-delayed and much-anticipated transit agreement is crucial for the future of the Southern Gas Corridor.

â€œBaku and the BP-led international consortium working at Shah Deniz will now be able to adhere to their previously agreed upon timetable concerning the expansion of the field. Significantly, representatives from the Italian company Edison, which is promoting the ITGI project, were quick to welcome the agreement and announced that all the elements were now in place for the IGTIâ€, says the report.

â€œThe day before the signing of the transit agreement, the Greek Minister of Environment, Energy and Climate Change was in Baku where he would have presumably lobbied for both the ITGI and the TAP which would run across Greek territoryâ€, according to Sidar Global Advisors.

The Turkish media have inaccurately reported that with the package of gas agreements the Nabucco project will now move ahead. In reality, a decision has still to be taken with regard to an export route for additional volumes of gas to be produced at Shah Deniz after 2017, but the signing of the transit agreement in Izmir is significant in that it has removed the last hurdle before this decision will be madeâ€, the authors say.