AssA-Irada,
20, September 2007

The governments of Azerbaijan and Austria on Thursday signed a protocol on the NABUCCO project that envisions transporting Caspian gas to world markets. The document was inked by Minister of Energy and Industry Natig Aliyev and Austrian economics and labor minister Martin Bartenstein.

The parties stressed that the NABUCCO pipeline would play an important role in taking Azeri gas to central and western Europe and supplying the energy-hungry European markets with hydrocarbons from the resource-rich Caspian region.

The protocol said that Azerbaijani state oil company SOCAR's possible participation in the pipeline project would deepen relations between the two countries and serve as an important step in ensuring European energy security. It also emphasized the importance of Azerbaijan's acting as a transit state for natural gas exports from the region.

The parties also pledged to expand the participation of the Austrian OMV company in energy projects in Azerbaijan.

On Thursday, the official opening of the company's representation was held in Baku. OMV is one of the key shareholders in the NABUCCO project.

Minister Natig Aliyev said the goal of the project was to export gas to European markets from Central Asia and the Caspian region as well as other regions, including the Persian Gulf. "OMV is playing a great role in implementing the NABUCCO project. The company has a 20% stake in the pipeline construction. The opening of its representation in Azerbaijan is of great importance," Aliyev said.

The trans-Caspian pipeline is expected to meet Europe's demand. The project will help European countries diversify supplies of energy resources and reduce dependence on Russian gas. The pipeline's annual throughput capacity is estimated at up to 31 billion cubic meters.

The project is of great importance for Azerbaijan as well. Although the country has its own pipeline - Baku-Tbilisi-Erzurum, the alternate route will bring it considerable transit revenues.