The project has the potential to play an important role in securing the European Union’s (EU’s) energy future while being a key component in the EU’s Southern Corridor for Caspian gas to Europe.
On 13 April 2010, Azerbaijani Minister of Industry and Energy Natig Aliyev, Romanian Minister of Economy, Commerce and Business Environment Adriean Videanu, and Georgian Minister of Energy Alexander Khetaguri signed a memorandum of understanding in co-operation in the field of LNG and its transportation. The document laid the framework for the implementation of the project and established the AGRI LNG SRL company.
Hungary later joined the partnership in February 2011.
Based on a linear east-west LNG chain, the Azerbaijan-Georgia-Romania-Hungary Natural Gas Interconnector (AGRI) Project is intended to transport market Azerbaijani and other Caspian Region natural gas to Romania, Hungary, and other central European and EU gas markets.Article continues below…
The gas would be transported through Georgia and the Black Sea, with new liquefaction and regasification terminals to be constructed on the Black Sea coasts of Georgia and Romania.
The feasibility study – which has already commenced – will include a gas market and gas supply analysis, development of conceptual engineering for pipelines and LNG terminals, economic and financial analysis, as well as risk assessment and environmental aspects. The study will be completed by November 2012.
The current shareholders of the AGRI Project include the national oil and gas companies from each of the four participating countries – Romgaz, State Oil Company of the Republic of Azerbaijan, Georgian Oil and Gas Corporation, and MVM Hungarian Electricity.