Azerbaijan and the Challenge of Energy Security: The Geopolitics of Energy Exports from the Caspian Region Gulmira Rzayeva Research Fellow Center for Strategic Studies under the President of Azerbaijan Singapore, 14 March, 2011. Outlines:.
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Azerbaijan and the Challenge of Energy Security: The Geopolitics of Energy Exports from the Caspian Region
Center for Strategic Studies under the President of Azerbaijan
Singapore, 14 March, 2011
Energy security is defined as the “reliable and adequate supply ofenergy at reasonable prices” or as “securing adequateenergy supplies at reasonable and stable prices in order to sustain economicperformance and growth”.
Energy security is essentially summarised in the following 3 elements –
Availability: Availability on demand, when a country wants energy, it should be available
Accessibility: The nation should be able to access energy sources globally to ensure uninterrupted growth
Affordability: Affordability of the energy being procured to ensure that the growth engine is not impacted by the price impact
Security for SEE region
marginal incremental cost
— So far, others have been willing to fund new pipelines
— Are the current three routes enough?
— During conditions of oversupply, Turkmenistan (as a relatively distant supplier) tends to suffer
— And it has been a major problem for Turkmenistan
— Theoretical capacity of 14 Bcma in place, with agreement for expansion to 20 Bcma
— Subject to other developments in Iran on supply and demand side
— Previous disputes on pricing resolved—for now
— Political risks and complications
— 30 Bcma pipeline in place, financed by China and implemented in record time
— Discussions on a second parallel line
— Ultimate Chinese demand for Turkmen gas depends on a host of factors
— So far, so good, apparently
— China deeply involved in Turkmen upstream, as producer, contractor and financier