Energy Transit in the Caucasus: A Legal Analysis

This article provides an analysis of the commonalities and regional specificities of the intergovernmental agreements (IGAs) and Host Government agreements (HGAs) setting up the Baku-Tbilisi-Ceyhan (BTC) Pipeline and the South Caucasus Pipeline. The paper also assesses the IGA for the Nabucco Pipeline project. It provides a careful examination of the links between the agreements comprising these three pipeline projects and the Energy Charter Model Agreements on Cross-border Pipelines in conjunction with the provisions of the Energy Charter draft Transit Protocol. This article attempts to answer the following questions: To what extent can common principles and regional specificities be derived from the agreements in question? How do the agreements relate to the Energy Charter Model Agreements and the Energy Charter draft Transit Protocol? 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?

Authors: Rafael Leal-Arcas