Energy Transit in the Caucasus: A Legal Analysis

Abstract

This article consists of an analysis of the intergovernmental agreements (IGAs) and Host Government agreements (HGAs) setting up the Baku-Tbilisi-Ceyhan Pipeline, the South Caucasus Pipeline, as well as the IGA making up the Nabucco Pipeline project. Through a careful examination of the agreements comprising the pipeline projects, and an in-depth study of the Energy Charter Model Agreements on Cross-border Pipelines in conjunction with the provisions of the Energy Charter draft Transit Protocol, this article will attempt to answer the following questions:

1. To what extent can common principles and regional specificities be derived from the agreements in question?

2. How do the agreements relate to the Energy Charter Model Agreements and the Energy Charter draft Transit Protocol?

3. What recommendations can be made in view of the possible agreement on common principles or rules on Transit and Cross-border energy flows in the Energy Charter context?

The article concludes with some recommendations in view of the possible agreement on common principles or rules on transit and cross-border energy flows in the Caucasus region in the context of the Energy Charter.

Keywords: Baku-Tbilisi-Ceyhan Pipeline, the South Caucasus Pipeline, Nabucco Pipeline project, Energy Charter Model Agreements on Cross-border Pipelines, Energy Charter draft Transit Protocol

JEL Classification: K33