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Showing posts with the label Georgia

Russia's Oil War

Just in case you may not be aware but the present crisis in the Caucasus may have more to do with oil and gas than protecting ethnic Russians .

Baku-Tbilisi-Erzurum pipeline (BTE) carries some six billion cubic metres of gas a year (bcm/y) to Turkey, some of which is then forwarded to Greece. As Azerbaijani gas output grows, the line should reach its full 20 bcm/y capacity by about 2014.The European Union is also backing proposals for development of essentially parallel lines to carry as much as a further 30 bcm/y of gas from Turkmenistan, and perhaps Kazakhstan.The EU calls the route through Azerbaijan and Georgia its "Fourth Corridor" - matching existing supply systems from Russia, Norway and North Africa - with concept projects such as the planned Nabucco pipeline from the Georgian-Turkish border to Austria seen as ways of implementing it.
Because transit through such a corridor bypasses Russia, it offers advantages to both Caspian producers and European consumers.Producers…