Kazakhstan may pump crude to Europe through Azerbaijan

KAZAKHSTAN will support all routes to transport its energy resources, be it to Europe or in the opposite direction, to China. Such was the keynote of the closing press conference held in Astana recently in the framework of the IV Eurasian Energy Forum, KazEnergy.
The German former chancellor, Gerhard Schroeder, the head of the Association of Oil Producing Companies of Kazakhstan KazEnergy, Timur Kulibaev and the head of the State Oil Company of Azerbaijan (SOCAR), Rovnag Abdullaev, attended the forum.
Schroeder presented a speech entitled ‘The Energy Partnership of Europe and Central Asia in the 21st Century’. After the traditional pleasantries that the European Union regarded Kazakhstan as a rising star and reliable partner in energy supplies, the ex-chancellor said that by 2030, the world’s demand for energy resources would increase by 50% compared with the current level of demand – EU countries alone will need 200 to 250 billion cubic metres of gas by 2015.
Considering this, Schroeder said that security of supplies, especially of gas, remained vital. He reiterated that Europe pinned high hopes on the new gas pipelines, including the Nabucco project. However, his statement that Nabucco would need Iranian gas came as a surprise to many.
“It is clear that in order to attract Iranian gas to this project the European Union will have to overcome political barriers and withstand the resistance associated with the economic sanctions levied on that country,” Schroeder said.
Asked to comment on this statement and on how the EU is going to handle this with the White House, Schroeder told journalists: “... President Obama, too, has talked on numerous occasions about his desire to overcome confrontation by looking for compromises. So now the European Union has voiced its intention to resolve issues through negotiations.”
Schroeder also said that Iran joining the Nabucco project would lead to large investments in the oil and gas sector of that country furthering its economic development “Nobody questions Iran’s right to the peaceful use of the atom. We are against it being used for other purposes. Western countries have voiced their desire. Now a response is expected from Iran’s government.”
At the Eurasian energy forum, KazEnergy’s Kulibaev and SOCAR’s Abdullaev discussed a possible new pipeline to pump Kazakhstan crude oil to the world markets through Azerbaijan.
According to Abdullaev, around 100,000 barrels of Kazakhstan crude are shipped daily from Tengiz to the world markets through Azerbaijan by the Baku-Tbilisi-Ceyhan pipeline and by railway. However, the current Azerbaijan capacities will clearly not be enough for the growing oil production in Kazakhstan and for when Kashagan becomes operative. “We can see a need in additional throughput capacities to move our crude through Azerbaijan. That is why we have agreed to consider the possible use of another existing oil pipeline, Baku-Supsa, and, if necessary, a new pipeline in the same corridor,” Kulibaev added.
In response to a journalist’s question about a priority direction for Kazakhstan, namely south though the Caucasus, north though Russia, or east to China, Kulibaev said: “Kazakhstan is building routes in all directions and has a very attractive position for both the energy producers and the energy consumers. If for some reason a route ceases to work, it is possible to re-direct the flows.”