SOCAR: Competing with Russia for gas exports is impossible

Baku. 19 February. REPORT.AZ/ Azerbaijan does not compete with Russia for natural gas exports to Europe. This was stated by Vice-President Report of the State Oil Company of Azerbaijan (SOCAR) on Processing David Mammadov, commented the opinion that the gas from the "Shah Deniz" field to save Europe from the Russian monopoly: " Competing with Russia for gas exports is impossible ".

According to D.Mammadov, gas from the "Shah Deniz" field can satisfy the needs of Romania and Bulgaria in gas: "Indeed, the Shah Deniz gas can meet the needs of countries such as Romania and Bulgaria. However, our volumes of gas in the amount of 10 billion cubic meters can't be compared with the Russian export gas in the amount of 140 billion cubic meters. Today, we can meet the needs of Bulgaria in 2 billion cubic meters. But in the future Bulgaria may need gas in large volumes. And if they turn to Azerbaijan, we are unable to provide for their needs, because Azerbaijani gas is already divided. Therefore, we need to put into operation new fields or increase the capacity of the pipeline. At the first stage exports amounted to 10 billion cubic meters. It is likely that in the future the volume will be increased to 25-30 bln. cubic meters".

D.Mammadov believes that for effective organization of export the proximity of the market sale is necessary. "Then transport costs will be less. Today we can go out and to the Chinese market, but what's the point if the costs exceed revenues. In this market, it is impossible to compete with Turkmenistan. At the moment, we have to learn Turkish and European markets. The less gas will be sold in Europe byRussia, the more will be able to sell by Azerbaijan. Turkey doesn't want to depend on any country and purchase liquid gas in Algeria. In short, everyone is trying for their own benefit".

In addition, the official representative of SOCAR said that, along with Russia, Israel and Cyprus can compete with Azerbaijan to transport gas to the European market: "Naturally, the laying of the pipeline is a risk. According to the information, new gas fields opened in Israel and Cyprus. In the future export of gas in liquefied form or by pipeline to Europe will have an impact on Russia and Azerbaijan. However, this question will depend on the needs of Europe's gas in the future. It is possible that this gas will not be able to meet the needs of Europe".