Acasă » Electricity » New energy opportunities in the development of economic relations with the Caspian states through the Port of Constanța

New energy opportunities in the development of economic relations with the Caspian states through the Port of Constanța

5 April 2023
Electricity
energynomics

The collaboration of the Black Sea and Caspian Sea ports can contribute to the development of an efficient and sustainable energy infrastructure that supports economic development and improves the energy security of the entire region. We publish below an opinion article sent by Mihai Aniței, Vice-President of the Constanța Port Business Association.

 

The conflict that started on February 24, 2022 in Ukraine configured a particular geopolitical context both in the Black Sea area and in the Caspian region. The port of Constanța becomes an important element connecting the European hinterland with the volumes of cargo supplied by the transport networks in the Caspian region. Kazakhstan has more than 30 percent of its exports directed to the European Union states. Georgia and Azerbaijan have invested in their rail systems over the past decade bringing them up to the level where they can accommodate significant freight flows. Ports in the Caspian region have more than 50% growth reserve and demonstrate transparency and trade openness. All these increases must be supported by an appropriate energy infrastructure.

The Black Sea-Caspian Sea Energy Corridor is an energy cooperation project involving several countries in the Black Sea region and the Caspian Sea region. The aim of this project is to improve energy security and develop energy transport infrastructure between these regions. The project was initially launched in 2011, and among the countries involved are Azerbaijan, Georgia, Romania, Turkey and Ukraine. Currently, the project aims to build natural gas and oil pipelines, as well as develop electricity production capacity.

In addition to economic benefits, the Black Sea energy corridor is also of strategic importance, as it can contribute to the diversification of energy sources for Europe and reduce dependence on Russia, which holds a dominant position in this region.

The collaboration between the ports of the Black Sea and the Caspian Sea together with the transport operators on this corridor can play an important role in creating an efficient energy infrastructure. This could include, among others, the following aspects:

Creation of an energy hub in one of the Black Sea ports

One of the Black Sea ports can be designated as an energy hub, where the storage and distribution of oil, gas and petrochemical products will be concentrated. This could reduce transport costs and increase the efficiency of import/export operations in the region.

Creating energy connections between ports

Improving the interconnectivity between ports could allow for easier and more efficient energy transport between them. This could be done by means of power pipes or cables.

Improvement of port infrastructure

Black Sea ports could invest in upgrading port infrastructure to increase energy transit and storage capacity. This would include the development of terminals for the storage and loading/unloading of liquefied natural gas or petrochemicals.

Sharing information and expertise

Black Sea ports could share information and expertise to better develop a common energy infrastructure strategy and share best practices.

Cooperation between actors from the Caspian region and the operators of the Port of Constanța is becoming a reality, through the Caspian Sea – Black Sea Forum, an event organized in Constanța by the Embassy of the Republic of Kazakhstan in Romania and the Constanța Port Business Organization (CPBA). The event manages to polarize, for the first time, the biggest players in the field of transport from Kazakhstan, Georgia, Azerbaijan and Romania.

At the beginning of 2023, a collaboration protocol was signed between the Constanța Port Business Association, the Embassy of the Republic of Kazakhstan in Romania and the Honorary Consulate of the Republic of Kazakhstan in Romania, the first materialization of which is the organization, on April 7, 2023 in Constanța, of the Forum for the promotion of the intermodal transport and energy relationship between the Caspian ports, the port of Constanța and the Danube to serve Central and Eastern Europe. Along with ports, sea carriers, railways, intermodals, operators and shippers from Kazakhstan, important transport companies and representatives of the business environment from Georgia and Azerbaijan will be present at the event. The ambassadors of the Republics of Kazakhstan and Georgia will present their point of view regarding the importance of the Caspian Sea-Black Sea corridor, while other diplomatic missions in the region have nominated their participants for the event.

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