For the first time the Ukrainian authorities expressed their desire to be involved in the trans-Anadolu (TANAP) gas pipeline in spring 2012, Ilham Shaban, head of the Azerbaijan Centre of Oil Studies, told Turan.
On April 4, 2013 Ukrainian Premier Nikolai Azarov said at the meeting with Azerbaijani President Ilham Aliyev that “Ukraine intends to join the TANAP construction.”
“However, later the Azerbaijani officials in the person of Rovnag Abdullayev, President of State Oil Company of Azerbaijan (SOCAR), said that the companies, which are involved in the Caspian gas projects, have free gas resources and intend to sell these resources at the western markets, will be SOCAR’s partners in TANAP,” Shaban explained.
He said the Azeri officials made it clear to their strategic partner that their interests in this issue do not coincide.
“During his visit to Kiev President Ilham Aliyev was accompanied by SOCAR President Rovnag Abdullayev and he has agreed to create the working group with the Ukrainian side,” Shaban added.
Shaban said that name of the working group does not correspond to its tasks. Ukraine’s involvement in TANAP is impossible for several objective reasons. Delivery of the Ukrainian pipes is out of the questions, SOCAR will most likely use Japanese pipes just like in the Baku-Tbilisi-Ceyhan oil pipeline. There is only one option is left – construction of the branch from the trans-Adriatic pipeline (TAP). Bulgaria imports Azerbaijani gas from the Shah-Deniz-2 via the pipeline branch from TAP through Greece. It would have been better for Ukraine to finish construction of this pipeline to get Azerbaijani gas instead of designing and building a new pipeline from Turkey.
How much will Caspian gas from Shah-Deniz-2 or Absheron field cost for Ukraine? It must be transited through Georgia, Turkey, Greece, Bulgaria, Romania and Moldova and only then reach the Ukrainian consumers, which is at least 4000 km. Thus, the price will be at least $400 per 1000 cub.m. at the Ukrainian border.
It is hard to say now if Ukraine should invest its funds into a new pipeline, its own production or energy efficiency, Shaban Added.—0—
Economics
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