Azeri leader lambasts Turkey as gas route to Europe
Azerbaijan may consider alternative gas routes
Azeri leader says may export gas to Russia, Iran
Backdrop of tensions over Turkish-Armenian thaw
By Afet MehtiyevaAzerbaijan may consider alternative gas routes
Azeri leader says may export gas to Russia, Iran
Backdrop of tensions over Turkish-Armenian thaw
BAKU, Oct 16 (Reuters) - Azerbaijan said on Friday Turkish terms for gas transit to Europe were unacceptable and the country was considering other routes to Europe, heightening tensions over a thaw between Ankara and Azeri foe Armenia.
"We've run out of options and the current offers cannot be accepted," President Ilham Aliyev told a government meeting.
"We have been supplying gas to Turkey for a long time at a price which is one third of the world price," he said in televised comments. "What country, especially in such a difficult time, would agree to sell its resources at 30 percent of world prices?"
Russia is competing with Europe's proposed Nabucco pipeline for access to gas supplies from the second phase of Azerbaijan's multibillion-dollar Shah Deniz deposit in the Caspian Sea.
But Azerbaijan, a supplier of oil and gas to the West, is angry at a thaw in relations between Muslim ally Turkey and neighbouring Armenia, Azerbaijan's enemy in a festering conflict over the breakaway Nagorno-Karabakh region.
Turkey and Armenia signed accords last week on the establishment of diplomatic relations and reopening of their border, the latest step in overcoming a century of hostility stemming from the World War One mass killing of Armenians by Ottoman Turks.
The accords need to be ratified by parliaments in both countries, and face opposition from hard-line nationalists, and particularly the powerful Armenian diaspora.
In Armenia on Friday, some 2,000 supporters of the nationalist Armenian Revolutionary Federation, known as Dashnaktsutyun, rallied in the capital Yerevan, calling for a halt to the thaw without Turkish recognition of last century's killings as genocide.
GAZPROM
Turkey rejects the term genocide, saying many people died on both sides of the conflict.
Trying to satisfy Azerbaijan, Ankara says it first wants Armenia to make concessions over Nagorno-Karabakh before it will ratify the accords and open the border.
The mainly Armenian-populated mountain region broke away from Azerbaijan in the early 1990s with the backing of Armenia and has resisted 15 years of mediation to resolve its status.
Azerbaijan and Turkey are in the midst of protracted negotiations over the terms of future gas supplies from Azerbaijan. Aliyev said Azerbaijan would start gas supplies to Russia from next year and possibly Iran in the future.
Russian energy giant Gazprom (GAZP.MM) has secured a deal to import a modest 500 million cubic metres of Azeri gas from next year but has said it intends to increase volumes.
This could give Moscow the upper hand in its rivalry with the European Union for influence over the flows of gas from the former Soviet republic to European markets.
The EU-sponsored and U.S.-supported Nabucco pipeline is a rival to Gazprom's South Stream planned link, which envisages carrying Russian gas to Europe via the Black Sea to bypass transit countries, including Ukraine.
Industry and Energy Minister Natik Aliyev told the government meeting that Shah Deniz would produce nine billion cubic metres of has per year from 2013.
"The current production at Shah Daniez is 23 million cubic metres per day, and from 2013 Shah Deniz will produce nine billion cubic metres of gas per year and 40 million of gas condensate per year," he said. (Additional reporting by Amie Ferris-Rotman in Moscow and Hasmik Mkrtchyan in Yerevan; Writing by Margarita Antidze and Matt Robinson in Tbilisi)
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