Azerbaijan Key Ally In Quest For Global Energy Security

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Investors Business Daily:

Thanks to Azerbaijan, one of America's underappreciated allies, global energy security is about to be enhanced markedly.

Next year, construction will begin on the Trans-Anatolian natural gas pipeline project (TANAP), majority-owned and partially financed by the state-owned energy company of Azerbaijan. Turkey has a 20% stake in TANAP while BP, Statoil and Total own 29%.

Stretching from the Turkish-Georgian border to Turkey's border with Europe, this $7 billion project will transport 16 billion cubic meters of Caspian gas annually to European markets, providing an alternative to Russian gas and avoiding supply disruptions caused either by disputes between Russia and the Ukraine or extremely harsh weather in Europe.

Other proposed pipelines will carry the gas from Turkey to the heart of Europe. Central and East European countries stand to benefit the most from the TANAP since they now have access only to Russian gas and are forced to pay 30% to 40% more than countries in Western Europe.

Assuming the pipeline is completed on schedule, Caspian gas should begin flowing to Europe no later than 2018.