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Centre for European Reform: Dispute between Turkey and Azerbaijan puts back Nabucco project

30 January 2010 21:24 (UTC +04:00)

Baku â€“ APA. Dispute between Turkey and Azerbaijan puts back Nabucco project, Britainâ€™s Centre for European Reform Instituteâ€™s report says.

Itâ€™s noted that Baku and Ankara cannot agree on how much Azerbaijani gas should go to Turkey, at what price and under what conditions.

Misunderstanding between Baku and Ankara caused the delay in Nabucco project, report said.
Though it was expected to get 8 billion cubic metres of gas for the first phase of Nabucco from Azerbaijanâ€™s new Shah Deniz II gas development, the companies involved in Shah Deniz II have stopped drilling, as the dispute continues.

â€œTurkey already buys around 6 bcm of gas from the Shah Deniz I field, for a very good price. It sells half of that gas on to Greece at a much higher price. Baku insists that the old pricing formula needs to be revised. Turkey disagrees. As long as this issue is not resolved, an agreement on the Shah Deniz II gas looks unlikely. Without that gas, it is hard to see how Nabucco could get under wayâ€, reports says.