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Today:
04  July  2008
Friday

 

Energy: Reducing the Costs and Enhancing Mutual Interdependence

Pipelines

TABDC has been promoting communication and correspondence between the officials of the both countries and concerned parties in private sector to develop additional pipelines via Armenia. Presently TABDC is lobbying the economic benefits of the passage through Armenian territory of the pipeline projects such as: Baku-Ceyhan, Azerbaijan Gas Pipeline and Russian Gas pipeline to Turkey. These routes prove to be cost-effective, commercially viable and strategically beneficial.

Armenia has the most convenient underground storage facilities for natural gas in the region. Annual underground storage capacity of natural gas of 220,000 cbm can easily go up to 1 billion cbm.

Electric Sale to Turkey

There is a surplus of electric energy sale to Turkey and there is a possibility of barter trade in return of payments. Armenia by far has the most excess generating capacities in the region. This capacity can be used if new markets for energy, and especially Turkey, are opened.

Armenia / Turkey: Gateway to Central Asia

Mersin - Yerevan- Baku Railway Project

Today, there is only one railway connection between Turkey and Russia and Central Asia and its through Armenia. Kars - Yerevan railway, which had been established during the Soviet Union Era, is the most economic way to move goods through Central Asia.

Today, this railway connection is not being utilized due to border closures. Economic losses associated with inadequate transport and trade infrastructure are very costly. Turkey and Armenia are losing their gateway position and as a consequence, Turkish ports in Black Sea, Mediterranean and Eastern provinces as well as Armenia are facing an enormous economic loss. A direct link between Armenian and Turkish infrastructure is likely to improve availability, predictability and reliability of shipping services for all Caucasus.

TABDC is active in talks promoting to open the Armenian rail and highways system for transhipment of goods through Armenia. TABDC sees great benefit in a Baku - Mersin direct railway project and is actively lobbying all concerned parties in both countries as well as all surrounding countries. This matter is of paramount importance to the TABDC.

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