Shale May Provide Caspian Gas Competitive Challenges

The announcement of a huge shale gas find in the UK by Cuadrilla Resources could well prove that the unconventional gas may be the energy game-changer in Europe that it has been in the U.S.

Positive results from shale gas explorations in Poland, Germany and other prospective areas, could see Caspian gas from Azerbaijan and Turkmenistan facing competition for meeting Europe's long-term gas needs.

The comments came from Angus Miller, The British Foreign Office's adviser on Caspian energy, at Gas Infrastructure World Caspian 2011 being held in Baku.

“Large volumes of Azerbaijani and Turkmen gas will be pumped into pipelines and shipped to Europe if a route is laid from the Caspian region. However, both liquid and shale gas, which has huge reserves in the US, can meet the needs of Europe. In all cases, there is a need for access to gas sources and the diversification of gas supplies," Miller said.

"With an alternative in the background - shale gas - producers, including Azerbaijan, could run into difficulties in the form of competition. Caspian producers, including Azerbaijan and Turkmenistan, have to be able to quickly deliver gas to the European market," Miller warned.