Another wave of tension emerged around the prospects of constructing an LNG terminal for liquefied gas on the Black Sea coast. It was provoked by Turkish Ambassador Mehmet Samsar’s statement. “We understand Ukraine’s needs related to the diversification of energy supply sources and support it in this. But at the same time, we are concerned about the danger posed by tankers with liquefied gas that will sail towards Ukrainian LNG terminal,” said the diplomat about Turkey’s unwillingness to let this gas through its Black Sea waters. However, according to The Day’s sources, close to the government in gas supply matters, the statement also relates to ships passing through the Bosphorus. The reason for this lies in Turkey’s desire to force Azerbaijan transfer all its free gas through the Trans-Anatolian gas pipeline (TANAP), which will run across its territory. That is why the prospects of construction an Azerbaijani gas pipeline and gas liquefaction terminal on the Black Sea coast are quite illusory. So, another geopolitical factor comes in force here. But this does not make it any easier for Ukraine. On June 25, the issue of tankers passing through Turkish waters will be brought up during a session of the bilateral government-to-government commission in Ankara.
On the other hand, Azerbaijan’s standpoint on the guaranteed supply of liquefied gas remains unclear. Let us remind that the purchase of up to 10 billion cubic meters of Azerbaijani liquefied gas for the Odesa LNG terminal was discussed earlier. However, there are no specific details yet. Does Azerbaijan still consider Ukraine as the priority energy partner in the gas sector? The Day talked about this and other issues with Azerbaijani Minister of Industry and Energy Natig Aliyev at the backstage of the international business conference “ABC: Ukraine & Partners.”
Is Azerbaijan ready to guarantee gas supply in case the LNG terminal is built on the Black Sea coast?
“Azerbaijan does not give any guarantees. Azerbaijan can only guarantee certain volume of gas supply to the Black Sea coast in Georgia. The rest of issues (gas liquefaction plant construction, creation of a special fleet, transshipment, or regasification plant construction) should be the object of investors’ concern. And this is a question to the government, the Cabinet of Ministers, and investors. This chain must work. The state cannot handle everything on its own. Attractive conditions must be created for investors to buy this gas, process it and sell it to this or another country. Ukraine, Romania, and Bulgaria are interested in it. I think we can also discuss these issues in this respect. Azerbaijan can currently provide a certain volume of gas, and we are considering purchase offers on three, five, and eight billion cubic meters.”
What specific amount are you ready to supply to Ukraine?
“From two to eight billion. But the precise figures depend on feasibility study and investor’s capital investments. It is him who determines the ceiling (based on the project’s economics), but not Azerbaijan.”
Which place does Azerbaijan give to Ukraine on the list of other countries it supplies with gas?
“Azerbaijan has established its priority directions. For the amount of gas production we have right now (28 billion cubic meters, which we plan to increase to 50 billion soon) this additional gas will be considered in various directions. But today, the East-West Gas Corridor, otherwise called the Southwest Gas Corridor, is of top priority for us. We have solved two tasks today: gas transit through Turkey to the border with Bulgaria or Greece. At the end of this month we are going to make a specific decision on the transit route: via Nabucco-West or TANAP to Italy, or via Bulgaria, Romania, and Hungary to Austria. These are our priority decisions. And concerning the Ukrainian direction, we are working on it. I think that when we succeed in these projects and invest further in the development of new gas fields, this will provide us with new additional export options. And that is why we come back to the matter of gas supply to Ukraine and finally settle it.”
Ukrainian government talks about our country’s desire to join the Trans-Anatolian pipeline construction as well. Do you see any foundations for this?
“No. TANAP is the pipeline for partner states and gas producers. There are other partners there. I see no point in this. What for? What will they get? Does Ukraine produce this gas? No. Is the pipeline going to pass through its territory? No. Perhaps, they hope to invest and have some profit out of it? But there’s little profit, since it is a pipeline project.”
Is it more profitable for Azerbaijan to participate in the Trans-Anatolian pipeline or in the construction of the White Stream (which passes through the territory of Ukraine)?
“The Trans-Anatolian pipeline is the priority for us. It is our access to Europe. We are already selling gas to Turkey. We are free gas producers and sellers. We need access to Europe. We are going to build this pipeline to the EU border, and then it is absolutely up to them to determine its further route.”
