Prospects of the Caspian natural gas supply to Europe and probable impact on the energy security of transit countries

The market for natural gas is gradually expanding worldwide, including Europe. The supply of European market from the remote Caspian gas fields requires infrastructure development and introduction of modem technologies that may affect the transit countries' energy security and more general development. The energy security of transit countries requires some significant issues that need immediate response: how does the transit fee for the received gas fit to the local energy market, how may the gas through transit countries' territory impact on the social and economic development of the local population, and what are the probable geopolitical consequences of the construction of new transit pipelines on local, regional and global levels. This article addresses the above listed problems and related issues, offers recommendations for their rational solution. Namely, it has been defined that the main priorities of transit countries in the South Caucasus region in a foreseeable future are: diversification of imported fuel supply, enhanced use of local energy sources, improved self-sufficiency by rehabilitation/renovation of existing electricity and gas supply chains, and the planning of strategic reserves combining water, liquid fuel and gas.