Showing posts with label Georgia. Show all posts
Showing posts with label Georgia. Show all posts

Wednesday, August 13, 2008

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 gain direct access to end-consumers at market prices, whereas at present Russia buys gas from Central Asia at one price, and then sells gas to Europe at much higher prices, the difference being far more than pure transportation costs would merit.

Other major lines that currently transit Georgia.

The biggest is the 1.0 mb/d capacity Baku-Tbilisi-Ceyhan (BTC) pipeline, which carries crude oil from Azerbaijan to the Turkish Mediterranean terminal at Ceyhan, from whence it gets transported by tanker to both Europe and the United States.

The next major line is Baku-Supsa, a 150,000 b/d line that has just reopened after undergoing substantial renovation.It carries oil to the Black Sea, but the port of Supsa is just 25 kilometres from Poti, the port which handles most of Georgia's imports and which was bombed and shelled by Russian forces.


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