US and EU to increase gas supplies from Caspian and Middle East regions

"We attribute great significance to the June 7, 2010 signing of a gas transit and pricing agreement between Turkey and Azerbaijan, which opened the way for producers and shippers to negotiate contracts to bring Caspian gas to European markets," the EU-US Energy Council participants reported in their joint press-statement, Trend reports.

According to the statement, the participants reviewed the work of the Energy Security Working Group and were encouraged by progress since the last meeting in the development of a Southern Corridor to diversify sources and routes to help meet Europe's long-term natural gas requirements.

"We look forward to the conclusion of commercial agreements with the Shah Deniz II consortium in early 2011, which will trigger actual construction of the necessary infrastructure," the statement reads.

At the same time the Energy Council participants considered additional, non-Caspian sources of gas for the Southern Corridor, agreeing that Iraq has the potential to export gas, whilst meeting its own domestic requirements.

The European Union and the United States established the EU-US Energy Council at ministerial level in November 2009 to promote their dialogue in these areas. The Energy Council met again today to review progress and delegate new projects to the working groups on security, technology and policy.