Andris Piebalgs: SOCAR has a diversified supply portfolio

-  What could you tell about the European Commission idea concerning establishing an Energy security panel in the frame of Eastern Partnership? I would like to have further details about this energy security group. What does it mean?

- The Eastern Partnership Communication foresees the setting up of a number of specialist platforms in important areas. One of the platforms will focus on energy security. The energy security platform will be a forum for EU Member States and Eastern Partnership countries to discuss and exchange views and best practices concerning inter alia emergency response mechanisms, interconnections and regulatory frameworks. The precise work programme of the platform will be decided once it meets. The first meeting is currently foreseen for June.

- What measures does the EU intend to take in support of the Southern energy corridor project realization and for the extension of the Odessa-Brody oil pipeline to Plock?

 - The EU is not in a position to act as an investor in pipeline projects. Nevertheless, the Commission is supportive of all well-grounded projects aiming to facilitate deliveries of crude oil from the Black Sea area to European markets. Extension of the Odessa-Brody pipeline and the possibility of flow reversals could reinforce the EU's security of supply and, in addition, could help to ease congestion of oil tankers at the crowded Bosporus straits.
With regard to gas, the Commission is supporting pipelines that will diversify supply.  The Commission is supporting the Nabucco pipeline by facilitating its political and legal agreements and is investing time in persuading potential suppliers to make a strategic commitment to the EU.  From the EU side, we will ensure that companies are in a position to firmly take and pay for gas that is committed by countries beyond Azerbaijan to the Southern Corridor route, of which Nabucco is a part.  In order to do so, our potential buyers could be grouped into a consortium called the Caspian Development Corporation, that could have its physical operations in Baku.

-  According to mass-media Gazprom and Azerbaijan’s national energy company (Socar) signed a memorandum of understanding on gas sales. Would you please inform me if this understanding can deprive the project Nabucco of additional gas resources? How do you suppose the realization of the project Nabucco in this case? Can the chances of its realization decrease?

- It is not my role to discuss speculations in the press. I understand that SOCAR is having discussions with many potential partners and has a diversified supply portfolio. All I can say is that neither SOCAR nor Azerbaijan have decreased their commitment to the Southern Corridor concept and I don't believe that either of them would have undermined that commitment through any commercial deal.

- According to mass-media Russia was interested in purchasing all Azerbaijani export gas. What could you tell about the EU attitude to this proposal? Could the EU put forward a similar proposal?

- Many companies are interested in buying Azeri gas, including Gazprom and many EU gas companies. The European Union is an attractive market and we consider it is very interesting for gas suppliers to sell in it. This is why we are confident that a substantial amount of Azeri gas can go to the European market, but this is certainly to the companies to decide.

- Please let me know if the project Nabucco is still priority for the EU? What could you tell about the influence of the energy resources prices’ decrease in the world market on the project Nabucco?

- Nabucco is indeed very important. The EU's support is unwavering. The fact that, through the European Economic Recovery Plan, we are committed to give EUR 200 million to Nabucco, and another EUR 100 million to ITGI, and that both of these pipes rely on Azerbaijan, is a strong signal of our support to the Southern Corridor and to Azerbaijan in particular. As to the effect of gas prices, and the overall state of the economy, this has had a very limited effect on Nabucco. I would even say that overall the result is positive; as steel prices are coming down and the competition for gas is less intense.
 
  Nabucco will go ahead. It is a question of time, and I hope that we will get the missing link for Nabucco in place soon. That missing link is a transit agreement with Turkey, Georgia and Azerbaijan. I think that this will be in place soon and that it will conform to international agreements, being a cost based transmission of gas regime.

- There is the opinion that the EU uses the project Nabucco as a pressure upon other suppliers of gas to Europe. The project has been discussed in recent years, but it has not been implemented yet. What do you think about it?

-This is not the case. The Commission believes in free market. Therefore we do not control prices or company behaviour. These issues are dealt with by companies and by market forces.

- I am interested in your opinion concerning Turkmenistan, Kazakhstan and Uzbekistan’ attitude towards the project Nabucco. It is known these countries refused to join the document on Nabucco. Does the Nabucco pipeline risk ending up without a gas suppliers?

- We are very pleased with the outcome of the recent gathering in Prague. This was not a Nabucco Summit, but rather a Summit focused on the Southern Corridor which includes Nabucco, as well as other projects. In terms of Central Asian countries signing a declaration, what is important is that Central Asian countries like Kazakhstan, Turkmenistan and Uzbekistan all participated in a Southern Corridor Summit and all accepted that this be recorded in the declaration. I think this is an important political act in of itself! It also sends a positive signal for further development of our energy relations with the region, including the development of and access to energy resources.

Arzu

Day.Az