Energy Corridors Review
Europe
Southern Gas Corridor Seeks Financial Backing Amidst Volatile Oil Prices
During the third ministerial meeting of the Southern Gas Corridor (SGC) Advisory Council, held in Baku, on February 23, the European Commission’s vice president for the Energy Union, Maroš Šefčovič, encouraged international financial institutions to bankroll the SGC project (Trend, February 23). Continue reading
Injecting Russian Gas Into TAP: Downgrading Importance of Southern Gas Corridor
For the first time ever, Gazprom officially expressed interest in using the Trans-Adriatic Pipeline (TAP) to deliver Russian gas to Europe (Trend, January 24). During the European Gas Conference in Vienna, on January 24, Gazprom deputy CEO Alexander Medvedev said that Russia’s upstream capacity is sufficient Continue reading
Perspective for Turkish Stream Project: Possible Scenarios and Challenges
Credit: http://www.euractiv.com
Following the cancellation of South Stream, Russia announced its plans to reroute the pipeline to Turkey, instead of Bulgaria. The new pipeline was dubbed “Turkish Stream”, with same capacity of South Stream, but less vulnerable to EU competition law. “Turkish Stream” has also experienced delays due to the crisis in Russia-Turkey relations. However, following the recent normalization of bilateral relations, the project regained its momentum. Continue reading
TAP’s Fate after the Italian Referendum
On December 4, a referendum in Italy rejected the sweeping constitutional reforms proposed by the government, ultimately resulting in the resignation of Matteo Renzi from the prime minister’s post. One of the main proposed constitutional changes was the division of competences between the state and the regions on defining which governing body will retain the legislative power on “land-use planning” and “transport and distribution of energy.” Continue reading
Perspectives for Israeli Gas in Southern Gas Corridor Hampered by Economic Limitations
Israeli Ambassador to Azerbaijan, Dan Stav, announced, on November 6, that his country was “considering the possibility to transport its natural gas to Europe via the Trans Anatolian Natural Gas Pipeline [TANAP] through Turkey.” Earlier, on October 14, Turkish presidential advisor Cemil Ertem declared that Turkey wants to connect Israel’s gas supplies to the Southern Gas Corridor (SGC) —an energy transit corridor from Azerbaijan to Europe, of which TANAP is a key link Continue reading
SOCAR’s Complicated DESFA Deal Faces New Setbacks
Rovnag Abdullayev, the head of Azerbaijan’s State Oil Company (SOCAR), told reporters on September 5 that his company is waiting for an explanation from the Greek government for its violation of the originally agreed-upon privatization terms for Greece’s Gas Transmission System Operator (DESFA) (Azernews.az, September 6). Continue reading
Azerbaijan: Europeanisation Versus Real-Politics
Since gaining its independence, Azerbaijan’s foreign policy is oscillating between security priorities and normative transformation. Following the dissolution of the USSR, newlyindependent Azerbaijan opened a new dimension of its foreign policy in the direction of the West. The successful realisation of the Baku-Tbilisi-Ceyhan oil pipeline and Baku-Tbilisi-Erzurum gas pipeline, as well as the whole East-West energy corridor paved the way for the economic integration of Azerbaijan into Europe. Continue reading
Turkey-Russia Rapprochement and Prospects for ‘Turkish Stream’
Credit: novinite.com
On June 27, Russian President Vladimir Putin received a letter from President of Turkey Recep Tayyip Erdoğan, expressing Turkey’s willingness to restore ties with Russia (Kremlin.ru, June 27). Immediately, Gazprom spokesperson Sergey Kupriyanov announced his company’s openness to dialogue with Ankara on the construction of the “Turkish Stream” natural gas pipeline Continue reading
Southern Gas Corridor Gains New Momentum
Work on the Southern Gas Corridor’s (SGC) implementation intensified to an unprecedented degree in recent months. On March 17 and May 17, the groundbreaking ceremonies of two key constituent parts of the Southern Corridor—the Trans-Anatolian Pipeline (TANAP) and the Trans-Adriatic Pipeline (TAP)—were held, respectively, in Turkey and Greece. Continue reading
Georgia’s Endeavours for Alternative Gas Supply: Implications for the regional Energy Map
During 1996-2003, Russian ITERA was a main gas supplier for Georgia and owner of its natural gas distribution companies. As of 2002, Eduard Shevardnadze’s administration sought to alienate ITERA from Georgia’s gas sector. In 2002, Russian Gazprom took over the natural gas sector from ITERA and the control over the main gas pipelines. Continue reading
Iranian gas in Georgia. A feasible option?
Over the past few months, the Chief of Russia’s Gazprom, Aleksei Miller, and Georgia’s Energy Minister Kakha Kaladze have been negotiating an energy deal between the two countries. The main issues on Georgia’s agenda have been its diversification plans and increasing energy consumption. Meanwhile, Georgia has not yet ruled out importing gas from Iran. Continue reading
Four-Day Karabakh War Highlights Threats to Energy Security on NATO’s Southeastern Flank
Source: http://www.russia-insider.com
The periodic escalation of violence in and around the separatist Azerbaijani territory of Karabakh routinely raises concerns about this conflict’s threat to regional energy security and pipeline infrastructure. However, few commentaries analyze this issue’s broader geopolitical implications in any detail. Continue reading
Falling Oil Prices and Its Implications for Azerbaijan’s Gas Policy
photo credit: http://www.sbs.com.au
On February 23, Azerbaijan’s parliament adopted amendments to the state budget to adjust down expected budget revenues based on oil price estimates of as low as $25 per barrel (Azernews.az, February 23). Initially, the State Budget for 2016 projected oil at $50–55/barrel (Trend, September 14, 2015). Continue reading
Importance of NATO’s Engagement in Critical Energy Infrastructure Protection in the South Caucasus
Following the collapse of the Soviet Union in the early 1990s, independent Azerbaijan and Georgia launched their new national energy policies. This enabled them to bring Western investment and technologies into their energy sectors, which led to the construction of the Baku-Tbilisi-Ceyhan, Baku-Supsa and Baku-Tbilisi-Erzurum pipelines. These pipelines empowered Azerbaijan and Georgia as politically and eco- nomically independent actors in regard to the transportation and supply of Caspian’s energy resources to the West. Continue reading
Azerbaijan’s Strategic Importance for Europe and the Parliamentary Elections
facebook.com/PresidentIlhamAliyev
Regardless of suffering of occupation from very near neighbourhood in early independence, Azerbaijan, by virtue of its vast energy resources and addressing them rationally, managed to achieve quite rapid economic development. The country, regardless of geopolitical situation in the region, however, is still able to run its foreign policy in a balanced manner without sacrificing its neither national interests nor pragmatic relations with near and far neighbours. Continue reading
Financial or Production Shortages of SOCAR?: Backstage of Recent Gas Deal with Russia’s Gazprom
Credit: gazprom.com
Despite other South Caucasus countries (Armenia and Georgia), Azerbaijan is not dependent on natural gas import from the third countries, as it is energy-independent due to its vast energy resources. Whereas, until 2007, Azerbaijan was importing Russian natural gas for its domestic consumption. Continue reading
Greece appeared a “Gordian Knot” for Azerbaijan’s SOCAR
Credit: http://www.telegraph.co.uk
Background
On 21 June 2013, the Azerbaijan’s state oil company SOCAR has won the tender to acquire the 66% share of the Greece’s Hellenic Gas Transmission System Operator (DESFA), which operates country’s gas transmission pipelines and distribution networks. The purchase accelerated the Shah Deniz Consortium’s decision on the final leg of the Southern Gas Corridor, by choosing the Trans-Adriatic Pipeline against the Nabucco-West, while SOCAR acquired 20% in TAP. Continue reading
Removal of sanctions from Iran: What does it promise for the Southern Gas Corridor?
Source: http://www.nbcnews.com
Developments in the international relations system are unpredictable. It rapidly shifts from one phase to another, from cooperation to conflict or vice versa. The new alteration in the international order will be the Iran-West rapprochement, which has been initially observed following the interim nuclear agreement in November 2013 between Iran and P5+1 countries Continue reading
Resurrection of Nabucco Pipeline: Real or Myth?
Background
The energy history of East-West energy corridor has not started with Nabucco, but Nabucco was considered a crown-jewel of the Southern Gas Corridor. Nabucco Consortium was established with Ankara Agreement in 2009 by Turkey, Romania, Bulgaria, Hungary and Austria to construct Nabucco gas pipeline with 31 bcm capacity from Turkey via Bulgaria, Romania and Hungary to Austria. Nabucco was planned to be linked with South Caucasus Pipeline in Erzurum, Turkey and Trans-Caspian Pipeline (TCP) in Azerbaijan to deliver Azeri and Turkmen gas to Europe to decrease the EU’s gas dependence on Russia. Continue reading
Repercussions of Turkish Stream for Southern Gas Corridor: Russia’s New Gas Strategy
Photo credit: Business Insider
Background
On December 1 2014, during his official visit to Turkey, Russian President Vladimir Putin announced the suspension of South Stream, blaming the EU for its “unconstructive” position. In fact, the realization of pipeline had become untenable as a result of various legal, political and financial issues, such as the EU’s Third Energy Package, the Ukraine crisis and the ensuing sanctions over companies involved in South Stream (Stroytransgaz and Gazprombank). Continue reading
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