Nabucco pipeline assumes strategic significance for Turkey: ambassador

Trend Capital: How many times will the effectiveness of Baku-Tbilisi-Ceyhan pipeline increase after the establishment of the Kazakhstan Caspian Transportation System (CCTS) and launching oil supply via this route?

Atilla Gunay: Baku-Tbilisi-Ceyhan pipeline project is of great importance from the point of view of global energy security. The pipeline ensures transportation of Azerbaijani oil along the route, which is alternative to the Black Sea and Turkish straits. Since the opening of the pipeline, about 700 million barrels of oil have been transported. Now BTC, with a capacity of one million barrels of oil per day, is able to cover 1.5 percent of world energy demand.

Q: What prospects does Turkey see for new projects in the Caspian?

A: Our country is a bridge between oil and gas producing countries in the Caspian region and Middle East and Europe, which is the largest consumer market. Turkey, a country where energy needs are rapidly growing, has also become an important market. The main goal of our energy strategy is to strengthen the transit role of our country on the axis of the East-West and North-South, as well as transform Turkey into the energy center of the region. Our country occupies an important place in several international projects in the field of oil and gas.

The most important completed oil project on the axis of the East-West is of course the BTC pipeline. With regards to North-South, the Samsun-Ceyhan pipeline is a project that we expect to finalize. We hope to see a similar interest of Kazakhstan in participation in this project.

In addition to the BTC pipeline and Samsun-Ceyhan pipeline, the pipeline starting from Kirkuk transports Iraqi oil to Ceyhan. Ceyhan Terminal was built with a technological infrastructure that provides an opportunity to export Caspian and Iraqi oil to world markets. Over the next period, there are plans to build a refinery here. During the visit of the Prime Minister of Russia Vladimir Putin to our country, an agreement was also reached to work together on the construction of oil refineries.

In the field of natural gas, our country also has a strategic role in new projects in the Caspian region. Recently, the project of Nabucco gas pipeline has been on the agenda of the world community. Nabucco assumes great strategic importance for our country. The project envisages transportation of natural gas from the Caspian region and Middle East through Turkey to the European market. Signing an inter-governmental agreement on this project on 13 July was an important advancement in the way of its realization. In the coming period, our country will continue its ongoing work on the Nabucco project.

Currently Azerbaijani gas is transported to our country via the Baku-Tbilisi-Erzurum gas pipeline that was put into operation in 2007. Certain part of the gas supplied via the pipeline, which is an important part of the East-West corridor, is transported to Greece through Turkish-Greek pipeline. In addition, there are plans that the Turkish-Greek pipeline will be extended to Italy, and will continue to ensure adequate supplies of natural gas in the volume of three billion cubic meters to Greece and eight billion cubic meters of gas to Italy.

All above-mentioned projects on transportation of Caspian hydrocarbon resources to world markets through alternative and reliable routes assume great significance both in terms of suppliers and consumer countries. I believe that these pipelines will create new spheres for cooperation between Turkey and the Caspian region. I hope that in the future, Kazakhstan, along with the BTC project, will support other projects, where Turkey is involved.

Q: How does Turkey assess the possibility of creating trans-Caspian oil and gas transportation projects?

A: As long as Kazakhstan and Turkmenistan do not have an access to the world's seas, trans-Caspian projects represent an important alternative in terms of diversity of ways of energy export.

After establishment of the Kazakhstan Caspian Transportation System, the oil is envisaged to be delivered via Caspian Sea by tankers. Completion of this project will be an important achievement not only for Kazakhstan, but also for Azerbaijan and Turkey.

Exportation of gas via the Caspian Sea is the question of different kind. In 1998 Turkey and Turkmenistan signed an agreement to build a trans-Caspian gas pipeline and export Turkmen gas to our country. But still there are no progresses in this regard.

Turkmenistan pursues a policy of selling its natural gas on the border. Kazakhstan also raises the question of differences between neighboring countries on the status of the Caspian Sea.

Exportation of natural gas through trans-Caspian pipeline in the future will provide an opportunity for Kazakhstan and Turkmenistan gain an access to markets of Turkey and Europe. Realizing this project will give an opportunity to connect Turkmenistan and Kazakhstan to the Nabucco project. Thus, the supplier as well as Turkish and European consumers will benefit from this project.

In addition, the issue of this pipeline is not on the agenda, I think that the consideration of this project by both countries in order to export gas through shorter and more reliable route to European markets will make a significant contribution to regional cooperation over the next years.

/Trend Capital/