The European Union (EU) will start talks with Azerbaijan and Turkmenistan to negotiate the construction of a trans-Caspian Nat Gas pipeline, the European Commission announced Monday. The pipeline is a major project to bring new sources of gas to Europe, said Energy Commissioner Gunther Oettinger, adding that work would commence as soon as possible.
According to a statement, the EU will negotiate a legally-binding treaty with Azerbaijan and Turkmenistan, the first time the EU has proposed a treaty in support of an infrastructure project. The treaty will be concluded after all 27 member states agree that the European Commission should conduct negotiations on its behalf.
The Caspian Nat Gas pipeline agreement will show the way for a submarine pipeline connecting Turkmenistan to Azerbaijan and bring Nat Gas from central Asia to the EU.
Azerbaijan and Turkmenistan have expressed their willingness to sell Nat Gas to Europe. The Southern Corridor will supply Europe with Nat Gas coming directly from the Caspian basin and the Middle East.
The EU is looking to diversify its gas sources and routes to avoid a repeat of what happened in Winter of Y 2009, when Russia cut off supplies to Europe through Ukraine over a business dispute.
The Southern Gas Corridor is expected to become a supply route for roughly 10 to 20% of EU Nat Gas demand by Y 2020.
The EU imports over 60% of its Nat Gas and 80% of its Crude Oil. Therefore, energy security and partnerships are high on the bloc's agenda.
Discussions with Azerbaijan and Turkmenistan will focus on setting out the legal commitments and practical working arrangements between the 3 parties.
Paul A. Ebeling, Jnr
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.