W-Stream Ltd - the promoter of the Trans-Caspian
and White Stream Gas Pipeline projects
Giorgi Vashakmadze – Director
GIOGIE Tbilisi, 26 March 2014
1 W-Stream Consortium
Turkmen gas for consumers in Europe
– a fully-fledged Southern Gas Corridor in 2020
2
Speaking at the Petrol-Gas Summit in Istanbul, the head of
the Turkish Energy Ministry's Transit Petrol Pipelines Office,
Reha Muratoglu, said that he believes the pumping of
Turkmen gas to Europe via TANAP pipelines across the
Caspian Sea has now become likely.
Last year Turkey's Energy Minister visited Turkmenistan,
where he submitted a request for an annual supply of 5-6
bcma of natural gas to TANAP.
24 February 2014 worldbulletin
http://www.worldbulletin.net/news/129538/turkmenistan-seeks-
gas-exports-to-europe-via-turkey-azerbaijan
The latest – Turkey
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The latest – the EU
UROPEAN COUCIL
20/21 MARCH 2014
COCLUSIONS
Member States will show solidarity in case of sudden
disruptions of energy supply in one or several Member
States. In addition, further action should be taken to
support the development of the Southern Corridor,
including further spur routes through Eastern Europe,
to examine ways to facilitate natural gas exports from
North America to the EU and consider how this may
best be reflected in the TTIP negotiations with the
United States , and increase the transparency of
Intergovernmental Agreements in the field of energy.
So reducing our energy dependency, especially with
Russia, was a key topic in our deliberations.
4 W-Stream Consortium
European Commission
Press release, Brussels, 17 December 2013
The European Commission welcomed today's final investment decision (FID) on
extracting gas from the Shah Deniz II gas field in Azerbaijan. With this long-awaited
decision, it is confirmed that Europe will get 10 bcm per year starting from end
2019…
EU Commission President José Manuel Barroso said: "Today's decision by the Shah-
Deniz-II-Consortium is a strategic door opener for stronger European energy security.
Building on the Joint Declaration I signed with President Aliyev in January 2011, this
important step will give the EU direct access to gas from the Caspian basin. This is a
major milestone for the diversification of our energy supplies, to the benefit of
European consumers and businesses."
EU Energy Commissioner Günther Oettinger said: "This decision to open the Southern
Gas Corridor is a real breakthrough. Through its further enlargement, the corridor
will have the potential to meet up to 20 per cent of the EU’s gas needs in the long
term.”
SD II gas into TANAP and TAP – the great start of the Southern Gas Corridor
Commissioner Oettinger: ‘'Ten bcm is a good start, but … If 10
bcm is all that there is, I will not fly to Baku and seek controversy
with Russia for that.'
Reuters, Nov 28, 2012
5 W-Stream Consortium
What are the possibilities for timely Corridor
enlargement? Where should the next gas come from?
Azerbaijan has reserves in addition to SD but will take
some time to develop.
Iraq, Iran are promising, but there is no confidence in
the pace of development.
East-Mediterranean gas could be developed timely,
but where would the gas go if LNG option is chosen?
The first project of the Southern Corridor is now
under way, making it possible to bring necessary
plans for “enlargement”
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For long there were controversial views about Turkmenistan’s
reserves; the geology, costs and commercial feasibility of new
fields.
And ….although the actual works on Galkynysh field started in 2009
only, 22 wells are already drilled successfully. In September
Turkmenistan has celebrated the start of commercial production
within the 30 bcma phase one development of the field.
Now it is proven: Only the South Pars
field shared by Qatar and Iran is larger.
The next stage - Turkmen gas and the Trans-Caspian Pipeline
7 W-Stream Consortium
The Government of Turkmenistan is building the so-called
East-West pipeline that will have the capacity of 30 bcma already
by 2016 making it possible to supply gas further West.
What will be required, is
merely 300km long, shallow
water pipeline. Such Trans-
Caspian pipeline would link
with the existing route that is
functional since 2006 and
delivers natural gas from
Azerbaijani to Georgia and
Turkey.
Trans-Caspian
pipeline.
8 W-Stream Consortium
In parallel, the EU applies efforts
towards making transit countries less
vulnerable for outside pressure through
extending transparent rules of ACQUIS
COMMUNAUTAIRE. While speaking at
the seminar devoted to official launch of
negotiations on Georgia’s accession to
the Energy Community Treaty,
Commissioner Oettinger underscored:
Turkmenistan is ready to sell at least
30bcma. Tbilisi, February 20, 2014
Gas supply from Turkmenistan can closely follow the start
of SDII deliveries. And the choice of TAP for SDII has created even more
advantageous conditions for successful marketing of gas in regions thought
previously as Nabucco pipeline destinations.
There are no insurmountable obstacles that can be foreseen: inclusion of TCP
into the newly created Connecting Europe Facility (CEF) scheme, along
with reinforced instruments within the CDC scheme are two essential tools
introduces by the EU lately for ensuring the success with the next stages.
9 W-Stream Consortium
Turkmen gas will start its
SGC journey at Turkmen
Caspian shore, gas will
come to Azerbaijan via the
Trans-Caspian Pipeline
(TCP), on its way to
western Georgia will use
the South Caucasus
Pipeline (SCP-(f)X), then
split into two trunks
providing two entry points
to the EU gas market:
one via TANAP in Turkey
and further through the
Trans Adriatic Pipeline
(TAP), and another via the
White-Stream Pipeline
(WSP) - under the Black
Sea waters.
http://ec.europa.eu/energy/infrastructure/pci/doc/pci_map_gas.pdf
The Southern Gas Corridor (SGC) structure under the latest
(October 2013) CEF supported plan, includes two separate
pipeline bundles. It is the first time that Trans-Caspian
Pipeline is identified as a project of Common Interest of the
EU (PCI) and it has a dedicated private promoter –
The W-Stream Caspian Ltd that cooperates with the European
Commission on the Public-Private partnership basis .
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"Southern Corridor" and the ”trust in gas”
"If the Russians reconcile
themselves to the fact that
"Southern Corridor" is inevitable
and that their former satellites of
Turkmenistan and Azerbaijan
have the right to make
independent decisions, the
Europeans will have far more
trust in gas as energy carrier of
future” Guenther Oettinger, September 2011 Deutsche Welle
Availability of sizable quantities of Turkmen gas will affect the size of the
EU's gas market positively, and thus bring more opportunities to other
suppliers:
SGC and CEF
© 2012 White Stream Pipeline Company Limited, the White Stream Consortium 11
12 W-Stream Consortium
13 W-Stream Consortium
The strategic objective of the SGC
14 W-Stream Consortium
The EU strategy document - Energy infrastructure
priorities for 2020 and beyond (17 November 2010) –
outlines the parameters of the Southern Gas Corridor:
“The strategic objective of the corridor is to achieve a
supply route to the EU of roughly 10-20% of EU gas
demand by 2020, equivalent roughly to 45-90 bcma”
Can the SGC fulfill all assigned
objectives?
One key point is: for the wholesale
competition to increase, the new supply
should be sizeable.
Critical role of the SGC for achieving
the desirable energy mix that is lower in emission and
keeps industry in Europe
Europe can pay less for energy
“…But the largest concentration of gas at global level is in the
Southern Corridor, in the path of countries that stretches from
Kazakhstan through to Egypt. ..Those countries are desperate to
have relationships with gas consuming countries; we have the
biggest market in the world, a great many things to offer those
countries and we should make it our responsibility to reach out
and bring that gas to the European Union."
http://www.naturalgaseurope.com/gasnaturally-gas-week-2013-brendan-devlin
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Commissioner Oettinger:
“Caspian gas is our salvation” 28 November 2012
“Access to Caspian gas - a key issue for
the EU ” 8 September 2011
“The trans-Caspian pipeline is a major
project in the Southern Corridor” 12 September 2011 EUROPEAN COMMISSION PRESS RELEASE
How important is the role of Caspian
gas?
Caspian gas
The Southern Corridor requires the implementation of
the ‘CDC concept’ along with the ‘two entry points
into the EU’ to reach the needed strategic magnitude
European Commission slide
© 2012 White Stream Pipeline Company Limited, the White Stream Consortium 18
19 W-Stream Consortium
Our team – now ‘W-Stream’
Successful
projects to which
our team members
have contributed.
The project that failed in late
90-s in spite of all great
prerequisites
Sangachal
Kazakh
Ceyhan
Erzurum
Supsa
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.. two entry points for Caspian gas:
via Turkey and the Black Sea
Two entry points approach aligns
multiple interests
The EU needs diversity of routes
as well as of sources. The capacity
of the Southern Gas Corridor
should comply with its strategic role.
Caspian needs a clear prospect of sufficiently large, reliable
revenue stream to warrant large, new direct gas trade deals and
investment in upstream exploration and production and TCGP.
Turkey’s ‘land bridge to Europe’ is in many ways the natural
gas pipeline route, but the prospect of a transport monopoly slows
progress on agreements, while the existence of a range of joint
interests with Russia contributes towards increaser risk perception
for TCP and upstream in CA. 21 W-Stream Consortium
Two entry point approach – how
it helps?
Turkey will benefit from the concurrent
development of TANAP and White Stream
Monopoly transit to EU can severely limit developments in Caspian and
hence the flows of gas from Caspian via Turkey
Concurrent development of TANAP and White Stream
will not only result in increased transit through Turkey from the Caspian,
but also provide enhanced supply diversification and competition
Turkey is also vitally interested in helping Caspian countries to
strengthen their economies and independence; there is no better way for
this than enabling them to establish large scale strategic trade relations
with the EU
White Stream will enable Turkey
to achieve its strategic objectives
W-Stream Consortium 22
23 W-Stream Consortium
White Stream and AGRI – components
of Southern and North-South Priority
Corridors respectively
Extract from ENTSOG MAP CAP 2013
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W-Stream, a key team player
in the EU Southern Corridor
W-Stream Consortium
THANK YOU!
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