Beyond the excitement of any project meant to lessen dependence on Russian gas, Azerbaijan Georgia Romania Interconnector (AGRI), an investment set to bring Caspian gas to Europe, is rather surrounded by question marks than certainty starting from the way the over 4bn euros are to be raised to the viability of the concept.
"Technical ability is far less important in such case than the economics. You cannot just invest in the LNG terminal, for the sake of just having one. If the terminal is not loaded, it means that the money invested in it is lost. Who should want it? And coming to the economics, there are several aspects to consider. Where would the LNG come from, and go to? For what period the demand is secured, and loadings of LNG port are guaranteed, and would this time be enough to return all funds invested? Would it not be safer and cheaper to get the same gas through the pipeline, saving on liquefaction and regasification costs? And does the country provide a good pipeline transportation system connected to the terminal, as it is not LNG but gas that is consumed, anyway? All these questions should be answered by the local market, not Gazprom," said the representatives of the Russian giant.
The representatives of Romgaz, a company that is part of this project, did not comment on the AGRI issue, specifying any information should be validated by all the parties involved.
Market sources say that at least at first sight the project has a big political weight, bigger than the economic one.
Beyond the excitement of any project meant to lessen dependence on Russian gas, Azerbaijan Georgia Romania Interconnector (AGRI), an investment set to bring Caspian gas to Europe, is rather surrounded by question marks than certainty starting from the way the over 4bn euros are to be raised to the viability of the concept.
"Technical abili
