Dietikon, Thursday, June 24, 2010
In order to underpin potential partnerships in the gas business, EGL has opened its own representative office in Baku. Reason: Natural gas from Azerbaijan is an ideal complement in EGL’s procurement portfolio alongside Russian and Iranian natural gas. With the planned additional natural gas from Azerbaijan, the Swiss energy trading company also supports the EU goals to increase supply security and diversification of supply sources.
In order to minimise risks in natural gas procurement, EGL’s gas strategy foresees a diversified procurement portfolio. In addition to suppliers such as Russia and Iran, Azerbaijan is also a potential partner. "EGL sees Azerbaijan as a sustainable and dependable provider for natural gas supply in Europe," says Markus Brokhof, Head of the Gas Supply & SEE division and Member of Executive Management. Hence, the long-term goal is to transport natural gas from the Shah Deniz gas field in Azerbaijan through the planned Trans Adriatic Pipeline (TAP) to Italy, where it will be used to fuel EGL’s gas-fired combined-cycle power plants.
Azerbaijan is rich in gas reservoirs and plans to export an additional 10 billion cubic metres of natural gas to Europe annually. At the beginning of June 2010, Turkey and Azerbaijan signed a Memorandum of Understanding (MoU) in Ankara, which among other things covers transit through Turkey. The Shah Deniz gas field is located about 100 kilometres southeast of Baku in the Caspian Sea and comprises an area of 858 square kilometres, at a water depth between 50 and 500 metres.
First corner stone in place
Markus Brokhof says: "In opening a representative office in Baku, we have laid the first corner stone for a further successful partnership in gas procurement. However, until natural gas from Azerbaijan flows through the TAP to Italy, a number of business decisions are necessary to close the value added chain." EGL’s new representative office in Baku will provide further support for cooperation with the local political and business stakeholders. The signed MoU between Azerbaijan and Turkey represents the starting shot for negotiations on gas deliveries from Azerbaijan.
In October 2007, Federal Councillor, Moritz Leuenberger, signed a MoU with Azerbaijan’s Industry and Energy Minister, Natig Alijev, outlining cooperation in the energy sector. The main focus of the MoU is to strengthen bi-lateral cooperation in the supply and transport of natural gas and oil.
Further information
Media Relations: Tel. +41 44 749 40 10, media.ch@egl.eu
