Nabucco: Azerbaijan's increasing role in ensuring energy security of Europe

What will Azerbaijan get from the construction of Nabucco gas pipeline? What serious steps takes Europe for the early realization of this energy and politically important project for it? After analyzing the situation around energy security of Europe, we will try to find answers to these and other questions. We also touch upon the significance of the natural resources of Azerbaijan to Europe.


By Mubariz Rahimli

Priority energy projects with the European Union is defined within the framework of mechanism called "Trans-European Energy Networks" (TEN) since the mid of 1990s. It provides for the European Commission funds to support projects, primarily in the form of financing their feasibility study. But apart from the EU, the U.S is also interested in this, which primarily gives priority to gas supply of Europe using Nabucco gas pipeline.
Nabucco - the planned gas pipeline length of 3.3 km from Turkmenistan and Azerbaijan to the EU countries, notably Austria and Germany. Design capacity - 26-32 billion cubic meters of gas per year. Preparation of the draft is carried out from 2002. Construction is scheduled to begin in 2011 and to complete by 2013. Estimated project cost - € 7, 9 billion
Companies involved in the consortium for the construction of gas pipeline are:

OMV Gas GmbH (Austria), BOTAŞ (Turkey), Bulgargaz (Bulgaria), S.N.T.G.N. Transgaz S.A. (Romania), MOL Natural Gas Transmission Company Ltd. (Hungary) and RWE AG (Germany).

The project began to be developed in February 2002 during talks between the Austrian company OMV and Turkish BOTAS. Initially, the project pipeline Nabucco, submitted in 2004, involved the supply of gas from fields in Iran in the Persian Gulf. In 2006 the decision was made in connection with the conflict over Iran's nuclear program to change the project so as to be able to deliver gas from Turkmenistan and Azerbaijan.
The designed capacity of the pipeline is 26-32 billion m ³ of gas per year. To ensure the capacity of Nabucco gas pipeline, it was proposed several fields in Iran (South Pars); Azerbaijan Shakh-Deniz field, in Turkmenistan (Dowletabat, South Yolotan-Osman) and others.
After the purchase in 2009, two members of the consortium Nabucco - Austrian Campaign OMV and Hungary's MOL stake in gas fields in northern Iraq - Khor Mor, and Chemchemal, it is planned to transport gas to Europe from Northern Iraq via the pipeline Nabucco. These deposits are able to provide 50% of gas needed to fill the pipeline.
For transportation of gas from Turkmenistan, the option of building an underwater gas pipeline from Turkmenbashi to Baku is being considered.
Lately the Nabucco project is too politicized. Not hard to see that some countries want to link the pipeline with their national interests. The gas conflict between Russia and Ukraine, 2005-2006 (gas conflict between Russia and Ukraine in 2005-2006 was caused by intention of the Russian concern “Gazprom” to rise prices for natural gas supplied to Ukraine. This step conformed to the general orientation of "Gazprom" on bringing export prices for gas for the Post-Soviet states in full compliance with the price level in the European gas market), led European countries to think seriously about alternative gas routes that would provide them with gas. In connection with the U.S. reluctance to see Iran in the project, Azerbaijan was in the first place being the focus of attention of these countries. Azerbaijan as a member of numerous transnational projects won image of a stable partner. In addition, ever-changing view of Turkmenistan to participate in this project further increases the importance of Azerbaijan to Europe.
Besides, constantly-changing opinion of Turkmenistan about the participating in this project is increasing the significance of Azerbaijan for Europe much more. From the field Shakh-Deniz II, carried out under the BP guide, the gas will be supplied to the Nabucco pipe-line of 3300 km length, which will run from Erzurum in Turkey to Austria. With it all Nabucco, the construction of which is to begin in 2011, collided with the plan expense problems, transit issues and even war. The construction of the gas transport system is planned to finish by 2014. In 2008 the Minister of Foreign Affairs of Turkey Ali Babajan declared the alternative of Georgia in connection with the conflict in South Osetia might be the variant of laying the pipe-line along the Armenian territory. In response to it the head department of the presidential administration of Azerbaijan N. Mammadov declared that the cooperation with Armenia is unacceptable because of the occupation of the Azerbaijani territories, but the route of the pipe-line has already been fixed.

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