FT: Azerbaijan gas pipeline aims to carve out a niche across Europe

For a decade, the EU has nurtured an almost absurdly ambitious plan – to pump natural gas from the Caspian Sea thousands of miles into the heart of Europe, and so reduce its heavy reliance on gas from Russia. When that plan finally got the go-ahead in December, it felt like a bit of a damp squib.

Agreements signed in Baku, Azerbaijan’s capital, will see a BP-led consortium start work on Shah Deniz II – a $28bn natural gas project in the Azeri sector of the Caspian that has been on the drawing board for years. The gas they produce will be sent through two enormous pipelines, one called Tanap and running the length of Turkey, and the other stretching across Greece into Italy, called TAP. The whole endeavour – gasfield, pipelines and all – is expected to cost about $45bn.  MORE