Natural gas sales and transit agreements signed by Turkey and Azerbaijan on June 7 appear to give a long-awaited green light for Azerbaijani gas sales to Europe-bound pipeline projects. While energy executives have welcomed the news, a source at Azerbaijan’s state energy company SOCAR tells EurasiaNet.org that the two sides failed to reach a comprehensive gas agreement.
Baku may still sport all the signs of energy wealth, but, after an almost decade-long boom, the International Monetary Fund is cautioning that Azerbaijan’s oil sector no longer has enough muscle to power economic growth alone.
In a surprise move, Turkey and Azerbaijan have postponed signing a package agreement on gas issues that had been touted as a strategic breakthrough on gas shipments to Europe.
Azerbaijan and Turkey are close to resolving a two-year gas-pricing dispute that has soured relations between the two strategic partners and which has stalled development of the Nabucco pipeline.
