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South Caucasus Possible Route For Iranian Gas Supply To Europe

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  • South Caucasus Possible Route For Iranian Gas Supply To Europe

    SOUTH CAUCASUS POSSIBLE ROUTE FOR IRANIAN GAS SUPPLY TO EUROPE

    12:09 * 25.09.14

    South Caucasus appears to be the most convenient route for exporting
    the Iranian natural gas to Europe, says Garegin Chugaszyan, the
    coordinator of the Pre-parliament group.

    Commenting on Iranian President Hassan Rouhani's recent statement
    that the country can be a reliable source of energy supply for Europe,
    Chugaszyan noted that the Islamic Republic had made similar statement
    repeatedly before.

    "Iran's energy minister announced several years ago that there are
    three routes for exporting the natural gas to Europe. One of the
    routes passes across Arab countries; the second goes via Turkey and
    the third - via Armenia," he told Tert.am, considering the former
    scenario unrealistic in light of the ISIS operations in Middle East.

    "Turkey is Iran's regional rival, so the Turkish route would make it
    dependent on the country. The second most convenient route is actually
    the one passing across the South Caucasus, Armenia and Georgia,"
    he explained.

    Chugaszyan said he knows that there is also a fourth route which
    somewhat skips the Iranian side's attention. "That's the route
    crossing the territory of Azerbaijan, but they do not discuss it,
    even in theory. So those are the three routes Iran had declared in
    advance," he noted.

    Chugaszyan said he thinks that the global developments suggesting
    switchover to a multi-polar world increase the role of the South
    Caucasus. "So it raises the price of the South Caucasus corridor in
    global terms, increasing simultaneously the price for Armenia. We
    all have to realize well that with the increasing price for the
    corridor, Armenia's price grows too. So we need to make up the right
    conclusions," he added.

    Chugaszyan said further that he doesn't underrate Russia's role in the
    project. "We have here interests which coincide, as well as interests
    which conflict with one another. When the Azerbaijanis were developing
    the Baku-Ceyhan oil pipeline, they naturally managed to convince the
    Russians that it might be useful for them. Hence the negotiations
    with Russia have to make Armenia's position clear," he said, stressing
    the need of emphasizing Armenia's role for Russia as an ally country.

    Commenting on the outcomes and impacts of the project, the political
    analyst Sargis Asatryansaid he believes that the Russian factor
    would reduce Iran's role to an alternative country of gas supply
    (given especially the recent activeness in the Iran-West talks and
    the attempts of normalizing relations).

    Unlike the Pre-parliament activist, Asatryan thinks Turkey to be the
    best transit country for gas supply.

    "But let us not forget that Iran can supply gas to Europe through
    Turkey, as the country already sells its natural gas and oil, using
    Turkey's territory. They can launch a big gas pipeline when they reach
    an agreement. In case of using Armenia's territory for gas supply,
    the transit countries' number will increase, covering the territories
    of Armenia, Georgia and the Black Sea," he said, noting that that
    Armenia's involvement in the project would create extra difficulties,
    with the region being considered highly sensitive for big investments.

    The analyst said he expects Russia to do everything possible in the
    present circumstances to maintain its monopolistic positions in Europe.

    "I don't know what Russia will do as a final step but I believe they
    will elaborate certain projects and become main stakeholders together
    once they see that it isn't any longer possible to restrain Iran.

    Asked whether he doesn't think that Azerbaijan's Southern Gas Corridor
    project is a good alternative to Russia's resources, Asatryan replied,
    "No matter how much Azerbaijan will try to be an alternative,
    Russia is, after all, a world leader with its natural gas resources,
    with Iran being the second. With Europe's gas demands increasing
    by every year, it is necessary to be able to supply that quantity
    of gas to the consumers. So will Azerbaijan alone manage to ensure
    that supply? I don't think so. They also want to involve Middle Asian
    countries -Turkmenistan and Kazakhstan - in all thus, as they also
    posses oil and gas resources. The situation remains entangled, as it
    is difficult to make out what solution the problem will eventually
    find. Russia keeps maintaining its monopolistic positions for the
    simple reason that it owns huge resources. And it actually manages
    to meet that big market's demand."

    Commenting on the tensions in Turkey-Iran relations, Asatryan said he
    knows that issues of the kind are normally pushed to the background
    when it comes to economy.

    Economist Tatul Manaseryan for his part stressed Armenia's role as a
    one-time Silk Road. "I think that the current geopolitical situation
    offers us a good chance to develop the relations with Iran. And the
    close cooperation met an understanding approach by the US in the
    recent years. So it is possible to consider such a project in case
    of a good organization," he noted.

    Asked to comment on Russia's possible stance, the economist said he
    finds that the country can combine its interests with the Iranian
    project. "I see complimentary rather than conflicting projects in
    this sense," he noted.

    http://www.tert.am/en/news/2014/09/25/gaz2/

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