Azerbaijan has delayed the beginning of development of the second stage of its large Shah-Deniz gas field which is in its section of the Caspian Sea. Reuters notes that this was due to the lack of a way to export the gas to Europe. Earlier, Baku decided to delay development of the field from 2013-14 to 2016, casting doubt on building the Nabucco pipeline.
Now Azerbaijan and Turkey are in active talks on gas supplies during which they are discussing gas prices, transport tariffs and volumes to be supplied to Turkey and Europe. The lack of an agreement between Azerbaijan and Turkey is blocking the start of construction on the 31 billion cubic meter per year Nabucco pipeline which is meant to ease Europe’s dependence on Russia.
