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SOCAR: Azerbaijan sees no alternative in transportation of gas to Europe

29 November 2012 12:46 (UTC +04:00)

Baku – APA-Economics. Azerbaijan sees no alternative in transportation of gas from Shah Deniz to Europe, said Kamal Abbasov, Head of Gas Export Department of SOCAR, APA-Economics reports quoting Reuters.

Note that in June Azerbaijan and Turkey signed intergovernmental agreement on realization of TransAnatolian gas pipeline project. But Abbasov noted that Azerbaijan would not satisfy with transporting own gas only to Turkey: ‘Turkish market satisfy us from viewpoint of commerce, but our goal is Europe. TANAP will be constructed in step with the second gas pipeline directed only to Europe’.

Note that on the way to the second phase of development of Shah Deniz deposit, the consortium will select one from two routes connected with transportation of gas to Europe by the mid of 2013. The consortium must select between the Nabucco West and TAP pipeline projects.

Abbasov expressed that the selection would depend on transportation tariffs of gas via pipeline, opportunities of putting up the gas for important markets and some technical details. SOCAR official confirmed that in 2018 Azerbaijan would be able to export 16 bcm of gas from Shah Deniz per annum. Abbasov said that he was agreed with European Commission’s forecasts on demand for natural gas: ‘Despite the reduction of demand for natural gas in Europe due to the crisis in eurozone, in future this demand will increase. Europe will close nuclear electric power plants and it will blow up the demand for gas’.

Remind that the last nuclear reactor in Germany, which is Europe's largest electricity market, will be closed in 2022. Such sharp change in energy policy is related to the accident, took place in Japanese Fukushima NPS.

French GDF Suez Co. forecasts that in 2015-2030, the demand for gas will remain stable in Europe. Nevertheless, according to the International Energy Agency, at the end of this decade, European demand for gas will climb up to only 2010’s level.