Today, energy security remains one of the topical problems concerning world countries. It is true that the creation of alternative energy sources has somehow reduced the need for traditional energy resources. However, the fast development of industry, the increase of the world population, production and the world economics adequately keep increasing the need for traditional energy.

After the first oil crisis in 1973, the majority of world countries started realizing what kind of risks the dependence on oil caused. The diversification of energy sources and formation of alternative energy sources became a significant challenge. At the same time, energy importing countries turned to the concept of getting rid of the dependence for security. Although in the 2000s, the search of alternative energy and usage of renewable energy sources expanded, the position of traditional energy sources did not weaken.  

In such a case, the place of energy exporting countries in the world economics and politics strengthened. In turn, in the 90s, Azerbaijan also started sparking as one of the important participants in the world energy market.   
Azerbaijan created the basis for the sustainable development of the country and at the same time, began to become an important subject in international relations by delivering its own energy resources to the world market. As a result of the implementation of the “Legend of 3 Seas” – Baku-Tbilisi-Ceyhan as part of the energy strategy of genius politician Heydar Aliyev, and the successful continuation of the national leader’s energy strategy, Azerbaijan not only plays a significant role in ensuring Europe’s energy security, but also this project has brought big economic and political dividends.

New exporter for “the old continent”or new design for energy market

Azerbaijan’s role in ensuring the energy security of Europe grows, as our country enters the gas market of the “old continent”. It also means the new formation of the energy map on a regional and international scale.

The opening ceremony of the part of the TANAP gas pipeline connecting with Europe in Ipsala settlement of Turkey’s Edirne province on November 30th is characterized by analysts as the launch of the new historical stage.  

The “Nabucco” gas pipeline project designed for delivering the Azerbaijani and Turkmen gas to Europe passing through Russia has been a topic of discussions for a long time. Along with ‘Nabucco”, ITGI (Turkey-Greece-Italy) and TAP have been proposed for delivering the Azerbaijani gas to Europe. Nevertheless, the “Nabucco” initiative has remained as a dream – “Nabucco” worth 250 mln EUR could not endure the political and economic competition and stepped out of the line.

TANAP, which is the main segment of the Southern Gas Corridor, will deliver the gas from “Shah-Deniz-2” gas-condensate field in the Azerbaijani sector of the Caspian Sea to European consumers. TANAP is a 1, 850-km pipeline starting from Posof settlement of Turkey’s Ardahan province and passing through 20 cities, 67 settlements and 600 villages in the territory of the brotherly country and reaching Europe in Ipsala settlement in Turkey’s Edirne. TANAP delivering the Azerbaijani gas to Turkey and Europe is linked to the Southern Caucasus Pipeline at Turkey-Georgia border and to TAP gas pipeline at Turkey-Greece border. The length of Georgia-Turkey border – Eskishehir part is 1, 350 km, and the length of the part at Turkey-Greece border is 480 km.

The memorandum of understanding on the TANAP project between Azerbaijan and Turkey was signed on December 24th, 2011, and the agreement on the Trans-Anatolian natural gas pipeline was signed on June 26th, 2012, in Istanbul, and both documents were ratified by the legislative bodies of the two countries. The final investment decision on the project was made on December 17th, 2013. The construction of the pipeline was launched after the groundbreaking ceremony held in Turkey’s Kars in 2015 with the participation of the Azerbaijani and Turkish Presidents.

The diameter of the onshore part of the pipeline is 56 and 48 inches and 36 inches throughout the Marmara Sea. The pipeline is located at 2, 700 meters above the sea level.

The first phase of TANAP called “the Energy Silk Road” was commissioned in Turkey’s Eskishehir on June 12th.  The first gas delivery to Turkey was launched on June 30th of the same year.

Thus, 3 segments of the Southern Gas Corridor – Shah-Deniz, the Southern Caucasus Pipeline and TANAP are successfully realized. The execution of the fourth project – TAP is also nearing an end. It means that the Azerbaijani gas gives a new design to Europe’s energy market.  

Who wins what?

The emergence of a new energy exporter has long been desirable for Europe.

Firstly, because energy security is possible only by ensuring altenativity.

Secondly, the existence of alternative sources gives an impetus for exporters to reconsider their price policy and formation of the competitive environment and thus, it is accompanied by the formation of more favorable market conditions for buyers.

By entering Europe’s gas market Azerbaijan:

a)      Achieves the diversification of the export network;

b)      Achieves the solution of the social-economic priorities by obtaining more revenues;

c)      Creates connections with new partners, and new investment opportunities emerge;

d)      All this reflects on politics - Azerbaijan also builds political partnership with the countries it has economic cooperation. It is, in turn, of high significance in international political relations.

The launch of Azerbaijan’s gas sale to Europe does not cause a threat to another important exporter – Russia. Buyers of the Russian and Azerbaijani gas are different countries.

The Southern Gas Corridor promises stability, security and prosperity both for the participating countries, and for the entire region.

Azerbaijani President Ilham Aliyev clearly stated the importance of the project at the opening ceremony of the part of TANAP gas pipeline connecting with Europe: “Today, the Southern Gas Corridor connects 7 countries in itself, and this is already an international cooperation project. This project will build bridges between the countries and pave the way for greater understanding. The seven countries participating in this project – 3 of them are EU members, will work together for a long time and share its benefits. So, this project brings cooperation, stability and long-term understanding".

Vusal Mammadov

Analytical Group