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TBILISI: Alternative transit routes for Azerbaijan

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  • TBILISI: Alternative transit routes for Azerbaijan

    The Messenger, Georgia
    Dec 30 2009


    Alternative transit routes for Azerbaijan

    By Messenger Staff Thursday, December 31

    Since Armenia and Turkey have started negotiating the possible opening
    of their mutual border and establishing better relations, Azerbaijan
    has started seeking new ways to transport its energy which would
    bypass Turkey. Konrad Zasztowt, an analyst from the Polish National
    Security Bureau, says that the Azeri side expressed its scepticism
    over the NABUCCO project when President Ilham Aliev stated that there
    are other alternatives. The analyst says that this statement does not
    mean that Azerbaijan will withdraw from the project but that this will
    be the Azeri standpoint in negotiations about it.

    Of course Azerbaijan is not ignoring the Turkish transit route for its
    energy resources as it is the most attractive of the existing routes,
    but due to the improvement in Turkish-Armenian relations, and its
    refusal to include Armenia in any project it is part of, Azerbaijan is
    exploring the possibility of transporting its energy resources through
    other routes, Russia, Iran and Georgia.

    At present Azerbaijan supplies Russia with 5,000 million cubic metres
    of gas annually. Of course this amount does not create big profits for
    Azerbaijan but could be increased at any moment very considerably
    purely by making a political decision. Azerbaijan is also connected to
    Iran by a gas pipeline and 7 billion cubic metres of gas will be
    exported there annually. However the Polish analyst thinks that it is
    unlikely that Azerbaijan will be much willing to increase cooperation
    with Iran, firstly because due to the global economic crisis it cannot
    sell the gas transported via Iran at European prices and secondly
    because this could undermine Baku-Washington relations.

    The other alternatives route is through Georgia, with the oil and gas
    going on through the Black Sea and either Ukraine or Romania. During
    his Bucharest trip at the end of September Aliev negotiated the
    possibility of constructing in oil terminal in Constanca and a
    pipeline for transporting Azeri products there. Azeri oil could be
    transported to Ukraine as well, and some has already been transported
    to Odessa and from there to the Kremenchug refinery.

    The possibility of sending Azeri oil through the Odessa-Brody
    pipeline, with a possible extension through Poland, is also being
    discussed. All these alternative plans will take time to be
    implemented however, and so everything depends on the Turkish position
    towards Armenia, Azerbaijan and the Karabakh issue.
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