Trend: Caspian gas and preferences of the European Union

A short time remains before the moment when a consortium of Shah Deniz, the largest Azeri gas field with reserves of 1.2 trillion cubic meters, will decide on the Central European (Austria) supply route in the framework of the Southern Gas Corridor.

Recall that a choice must be held between the Nabucco (Nabucco-West) pipeline project and the SEEP (South-Eastern Europe Pipeline) one, proposed by BP. The chosen route will then compete with the TAP (Trans-Adriatic gas pipeline) project previously selected as a route to deliver gas to Italy. And the choice between the two remaining projects will be made in 2013 when we will all know where Azerbaijani gas is to be supplied - in Italy or Central Europe.
While acknowledging the advantages of the TAP project and in no way diminishing its competitiveness, in comparison with other projects of the Azerbaijani gas supply to Europe, it is necessary however, to note some points relating to the gas market in Italy.

The Italian gas market is not comparable in scale with the importing markets of the whole of the south-eastern European countries. Italy imported more than 75 billion cubic meters of gas in 2010 while the countries of the Central European route of Caspian gas imported five times less: Bulgaria, Romania, Serbia, approximately two billion each, Hungary - 7.5 billion and Croatia one billion, but Italy also has incomparably greater sources of supply.  MORE