Azerbaijan- Turkey cooperation in the Energy Resources Transportation:From “Nabucco” to“Southern Gas Corridor

Abstract

From the initial period, Azerbaijan Republic closely cooperates with Turkey in the realization of international energy projects. Turkish companies BOTASH and TPAO participate in oil and gas projects of Azerbaijan.

After the launch of natural gas production from the gas field "Shahdeniz" and operation of Baku-Tbilisi-Erzurum pipeline, Azerbaijan started to be considered as a new source of blue fuel for European countries. The beginning of 2009, gas crisis that took place between Ukraine and Russia further strengthened the relevance of the pipeline project "Nabucco". However, the lack of gas resources volume and Western countries hesitation in financing issues impeded the implementation process of the project. In 2012 under these circumstances, Azerbaijan and Turkey launched an initiative to the construction of TANAP (Trans-Anatolian pipeline). Moreover, a year later it was decided to proceed this project on a gas route TAP (Trans-Adriatic pipeline) to Southern Italy. Thus, "Southern gas corridor" was formed which included the following projects like "Shahdeniz-2", South Caucasus gas pipeline, TANAP and TAP. This corridor was considered as a strategic solution in the diversification of gas import routes and European energy security insurance. It should be noted that Azerbaijan and Turkey play a crucial role in the implementation of this project carrying out a significant part of funding. Moreover, Azerbaijan as a source of energy provision and Turkey as a transit country make essential contribution to the realization of "Southern gas corridor" project.