PFC Energy: Azerbaijan will be best served with multiple gas export options

"Europe depends on a number of gas suppliers, not just Russia. Azerbaijan is seen as an additional supply source once the second phase of Shah Deniz began producing later this decade," Nanay said.

"Nabucco would allow Azerbaijan's gas to flow to the Central European countries that are seeking to diversify their gas sourcing," she said.

Nanay said Azerbaijani gas must be transported across Turkey to get to these countries.

Speaking about the talks on the gas price between Azerbaijan and Turkey, Nanay said that taking into account the practice in the region, Turkey and Azerbaijan must reach a mutually acceptable agreement.

Gas prices have definitely been moving higher in response to market forces, she said.

She said Azerbaijan will likely to produce enough additional gas in future to supply a new pipeline to Europe across Turkey, as well as conclude contracts with Iran and other countries.

"If the Nabucco pipeline is built, it will be able to provide Azerbaijan with options to ship its gas in several directions. If problems arise with one route, it can use another direction. Given the country's location, Azerbaijan will be best served with multiple gas export options," she said.

PFC Energy was founded in 1984. It conducts a comprehensive analysis and development of scenarios that are the foundation to develop strategies, evaluate investments and business decision-making at the global and regional levels.

/Trend Capital/