30.12.2014 Views

Caspian Report - Issue: 08 - Fall 2014

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

THANOS DOKOS, THEODORE TSAKIRIS<br />

104<br />

instability which has plagued Iraq,<br />

Syria and Egypt has suspended their<br />

export potential in the short to medium-term.<br />

2<br />

Any discussion of the TAP (which<br />

won the tender to transport Azerbaijani<br />

gas to Europe via Turkey) and<br />

Trans Anatolian Natural Gas Pipeline<br />

(TANAP) requires an analysis of<br />

the geopolitical environment which<br />

– to a large extent - determined its<br />

eventual selection. The examination<br />

of the geopolitical underpinnings<br />

of TAP and its sister project TANAP<br />

THE GEOPOLITICAL NOTION OF ENERGY TRADE<br />

AS A COMPONENT OF FOREIGN POLICY AND<br />

NATIONAL EMPOWERMENT IS NOT EXCLUSIVE TO<br />

THE PRODUCING OR EXPORTING STATES.<br />

along with their impact on the regional<br />

balance of power is important<br />

for three principal reasons:<br />

i. The region these pipelines will<br />

have to cross in order to connect<br />

the upstream producer (currently<br />

Azerbaijan, and in the longer term<br />

Iraq and/or Turkmenistan) with<br />

the main transit states (Georgia and<br />

Turkey) and finally the consumers in<br />

South East and Central Europe suffers<br />

from endemic instability. The<br />

attendant threat primarily relates to<br />

the possibility of disrupting the flow<br />

of natural gas through these pipelines<br />

after they are constructed. For<br />

instance, this affected Azerbaijani<br />

exports to Turkey during the 20<strong>08</strong><br />

Russian-Georgian War. 3<br />

ii. The region’s net energy exporters<br />

attribute an important geopolitical<br />

significance to their oil and<br />

gas exports. These exports not only<br />

represent an important financial<br />

transaction which accounts for a<br />

major component of their respective<br />

GDPs and budgetary revenues; 4<br />

they also represent a declaration of<br />

diplomatic intent, a marker geopolitical<br />

orientation and an extension<br />

of its foreign policy. For Azerbaijan,<br />

the principal (if not sole) arbiter of<br />

the Southern Gas Corridor Strategy,<br />

energy export policy is “a means of<br />

consolidating its sovereignty”, according<br />

to Dr. Elhur Soltanov of<br />

Azerbaijan’s Diplomatic Academy. 5<br />

iii: The geopolitical notion of energy<br />

trade as a component of foreign<br />

policy and national empowerment is<br />

not exclusive to the producing or exporting<br />

states. Several of the potential<br />

transiting states, namely Georgia,<br />

Turkey, Greece, and even Albania,<br />

do not only want to secure stable<br />

and affordable natural gas supplies.<br />

They want to see diplomatic gains<br />

through the transit of these supplies<br />

through their own territory, for reasons<br />

that go beyond their immediate<br />

energy needs. In the case of Albania,<br />

for instance, those needs are practically<br />

non-existent since the country’s<br />

natural gas consumption is extremely<br />

low.<br />

2.<br />

See inter alia, Gulmira Rzayeva & Theodoros Tsakiris, Strategic Imperative: Azerbaijani Gas<br />

Strategy and the EU’s Southern Corridor, SAM Center for Strategic Studies under the President of<br />

Azerbaijan, SAM Review #5, (Baku: June 2012), pp.6-13.<br />

3.<br />

The flow of gas continued through the Turkish component of the South Caucasus Gas Pipeline that<br />

links Baku and Erzurum via Tbilisi. “BP: Gas Still Flowing on the Turkish Side of the South Caucasus<br />

Pipe”, DowJones, 12/<strong>08</strong>/20<strong>08</strong>.<br />

4.<br />

In 2010, oil & gas exports amounted to 90% of Azeri exports that according to the CIA World Fact<br />

Book (updated to 12/07/2011) amounted to approximately $28,07 billion compared to a state<br />

budget of $28,83 billion in 2010. https://www.cia.gov/library/publications/the-world-factbook/<br />

geos/aj.html<br />

5.<br />

Elhur Soltanov, Azerbaijan’s Energy Policy: Balancing North and East, Going West, paper presented<br />

at IENE’s 5th South East Europe Energy Dialogue, (Thessaloniki: 2-3 June 2011), p.2.

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!