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Senior director at the Global PFC Energy Julia Nanay: Azerbaijan wants to move its gas to international markets and Europe is the logical target

29 October 2010 13:42 (UTC +04:00)

Baku â€“ APA. â€œIf Azerbaijan wants to secure its future gas role in international markets, it will need to diversify its options. Russia, of course, is a customer and is one option. But the gas volumes Russia requires vary according to its own needs. Gas shipments to the west will provide Baku with additional possibilities and ensure its own energy securityâ€, Julia Nanay, senior director at the Global PFC Energy (Petroleum Finance Company) in Washington DC said in an interview with APAâ€™s US correspondent.

Ms. Nanay pointed out that, Russiaâ€™s real gas need on Caspian is unclear:
â€œHow much gas Russia needs from the Caspian region is not clear now, at least now. Whatever any gas supplier does, Russia included, these actions needs to satisfy its own commercial and political interests. Baku has to decide what those interests are. In the meantime, there are international oil companies that will be involved in producing the gas and they too will have interests to protectâ€.

According to the analyst, gas supply from the Caspian can also go to either Europe or China. She believes that, given Azerbaijanâ€™s location on the Western side of the Caspian, its resources can more easily access Europe than China.

â€œA pipeline from the region is going to be realized to the West. It is just a question of timing, and will depend on the decision of Azerbaijanâ€™s state company SOCAR and the companies which are its partners in developing the gas as to which pipeline option makes the most sense and in what timeframe. It is in the interests of both SOCAR and the companies to find a route to move their gas to the where consumers need it, and targeting European markets makes good business sense for the long-term futureâ€.

Asked how to characterize Nabuccoâ€™s future if Turkmenistan and Kazakhstan refuse to join the project, Ms. Nanay mentioned that it will not depend on those countries joining a gas pipeline. â€œSOCAR expects increasing gas production from its own fields in the future. If Turkmenistan decides to ship its gas in this direction it would be a good addition, of course. And it would provide Turkmenistan with a diversification option, which can only enhance its ability to access a wider range of consumersâ€, -she added.

The US analyst also mentioned that bringing gas resources from Azerbaijan to Europe would create benefits for both Azerbaijan and Europe: â€œBaku has always tried to diversify the countries which are its investments partners. Now, it would be in its interests to diversify its markets. Gas is considered by consumers to be the fuel of choice for the future, and Baku could play a role in this arena. In any case, Baku wants to move its gas to international markets and Europe is the logical targetâ€.