Iran and Azerbaijan compete over gas exports

Turkish Minister of Energy and Natural Recourses, Taner Yildiz stated recently a number of different countries are being considered to provide the natural gas for the NABUCCO project: Azerbaijan, Turkmenistan, Iraq and Iran. He also named three major routes from Azerbaijan via Georgia and either from Iraq or from Iran. Currently, the most intensively observed option is to provide NABUCCO with gas from Azerbaijan and Iraq, which clearly rules out Iran. However a final decision will be made by the end of 2010. Iran is second biggest producer of natural gas; it is also quite close to the European markets, whereas Azerbaijan has not yet achieved the desirable output from the Shah Deniz 1 gas field. In reality analysts say that Iran and Azerbaijan are competing. As chairman of the oil research centre, Ilham Shaban states that Turkey is ready and willing to become an important part of the NABUCCO project. According to different sources, Iran is prepared to send the West more than 40 billion cubic metres of gas annually, up to 100 billion. On the other hand Azerbaijan exports its gas in different directions thus diversifying its markets. On September 13, Baku will host an international conference, where the major topic will be the transportation of liquid gas.