Special envoy: U.S. wants to help Caspian, Central Asian countries to find new routes to energy markets

Morningstar described the Nabucco intergovernmental agreement signed in Turkey on July 13 as a major milestone in opening a new natural gas corridor to Europe.

“It demonstrated the commitment of Turkey and the other participating countries to that project and needs of Europe. This signing should provide a great impetus to the project. We also have to remember there are many steps to realize the project”.

He said one of the most interesting aspects of the signing was that Iraqi Prime Minister Maliki attended and announced that Iraq would like to supply 15 bcm/a to Nabucco.

The envoy said there are three main components of our Eurasian energy strategy.

“First, we want to encourage the development of new oil and gas resources and also promote efficiency and conservation in the use of all energy resources. Because there is a world market for oil, new production can meet growing demand anywhere in the world, including in the U.S. When we are talking about new natural gas production in the Caspian region, it is unlikely that even one molecule of that gas will reach the U.S., but it is still important because it would add to international gas supply. Additional supply in one place naturally frees up supply in another. And as the market for liquefied natural gas grows, we can start to think about gas moving around markets in much the same way oil does”.

Ambassador Morningstar said the second goal is the assistance to Europe in its quest for energy security.

“Taking goods and services together, the EU27 and the U.S. account for the largest bilateral trade relationship in the world. Europe is our partner on any number of global issues. We have an interest in an economically strong Europe. So, our aim is to encourage the development of multiple energy sources with multiple routes to market. This approach furthers competitive, efficient markets and the best prices for consumers”.

Morningstar said the third goal is that they want to help Caspian and Central Asian countries find new routes to market, to help foster economic growth and prosperity in these countries.

By expanding export routes, they can increase competition for their resources and demand a higher price.

“Some people have portrayed our energy policy and Russia’s as the next round in the Great Game in Central Asia. I reject this analogy. Energy security should not be a zero sum game. Zero sum games are too expensive and we need to find areas where we try to cooperate with Russia”.

Ambassador Morningstar explained the way of achieving their energy security goals.

“Private sector and free market forces are the primary means through which oil and gas are produced, transported, and purchased. But governments can and should play a facilitating role. Governments should put in place the right business climate to attract investment and should work with neighboring states to expand the market and increase interconnectivities. We can encourage these efforts”, Morningstar said.

“We strongly support opening a new corridor, a southern corridor, to bring Caspian natural gas to Europe. This corridor should include Nabucco and the Turkey-Greece-Italy Interconnector, both of which we support. These projects are extremely important from a diversification and strategic standpoint. They can help open up further upstream development not just in Azerbaijan but also in Turkmenistan and Iraq”.

/APA/