Energy of the Turkic states and the interests of Europe: Azerbaijan
Energy of the Turkic states and the interests of Europe: Azerbaijan
Azerbaijan, a country of oil and natural gas, has expanded natural gas exports to Europe in recent years, coming to the fore as a country that has "made a significant contribution to Europe's energy security" and "changed the energy map of Eurasia."
Europe, which is experiencing a gas crisis due to the war in Ukraine, has begun a new quest to diversify its energy resources. These searches have increased interest in Azerbaijan among stakeholders of the 3,500-kilometer Southern Gas Corridor, which stretches from Baku to Europe through Georgia and Turkey, and deepened relations with this country in the energy sector.
The Memorandum of Understanding on Strategic Partnership in the Energy Sector was signed between the European Union (EU) and Azerbaijan on July 18, 2022. Azerbaijan, which in the first period supplied natural gas only to Georgia and Turkey, became a country exporting natural gas to 7 countries with the addition of 5 European countries. Today, 50 percent of Azerbaijan's natural gas exports go to European countries. EU leaders describe Azerbaijan as a "reliable partner" and a "pan-European gas supplier."
It is expected that the volume of natural gas from Azerbaijan to Europe will be increased to 20 billion cubic meters
Azerbaijan exports natural gas to Italy, Greece, Bulgaria, Romania and Hungary. It is expected that in the future, countries such as Serbia, Albania, Bosnia and Herzegovina, Montenegro, Croatia, Slovakia and North Macedonia will receive natural gas from Azerbaijan.
Azerbaijan, which exported more than 8 billion cubic meters of natural gas to Europe in 2021, increased this figure to 11.8 billion cubic meters in 2023. In accordance with the memorandum of understanding signed with the EU, it is expected that by 2027 the volume of natural gas shipped from Azerbaijan to Europe will be increased to 20 billion cubic meters.
In 2021, Azerbaijan exported 19 billion cubic meters of natural gas, in 2022 — 22.6 billion cubic meters, in 2023 — 23.8 billion cubic meters.
Pipelines need to increase their capacity
Azerbaijan's proven natural gas reserves amount to 2.6 trillion cubic meters, and they are expected to increase after exploration work at the Absheron, Umid, Babek and Karabakh fields.
Additional investments are needed to increase gas supplies from Azerbaijan to Europe.
The annual capacity of TAP, the European section of the Southern Gas Corridor, is estimated at 10 billion cubic meters of gas per year. The capacity of this pipeline is planned to be doubled.
Increasing the capacity of the Turkish section of the TANAP corridor from 16 billion cubic meters to 24 billion cubic meters, and then to 31 billion cubic meters is considered as a goal that can be achieved through investments.
If Europe, which annually buys about 155 billion cubic meters of natural gas from Russia, buys more natural gas from Azerbaijan, investments are expected to increase even more.
"Azerbaijan has enough natural gas for itself and its partners for at least 100 years"
In his speech, Azerbaijani President Ilham Aliyev assessed natural gas supplies to Europe as "changing the energy map of Eurasia" and "making a significant contribution to Europe's energy security" and said: "We have enough natural gas reserves to last us and our partners for at least 100 years."
European Commission President Ursula von der Leyen, who signed a Memorandum of Understanding on strategic partnership in the field of energy with Azerbaijan, said: "The EU is turning to reliable energy suppliers. Azerbaijan is one of them."
"Azerbaijan is a stable and reliable supplier of natural gas"
Ilham Shaban, president of the Caspian Barrel Oil Research Center (AA), told Anadolu agency that Azerbaijan has been exporting natural gas to Europe since December 31, 2020.
"Over the past 3 years, Azerbaijan has proved in the European market that it is a stable and reliable supplier of natural gas. Thus, confidence in Azerbaijan in Europe is gradually growing," he said.
Stating that Azerbaijan has also started the operation of the Absheron field and increased production at the Yumid field, Shaban said that the export of natural gas from the country will increase with the start of operation of the Babek and Karabakh fields.
"Azerbaijan has enough natural gas reserves. We are moving from oil to natural gas in production and export. The 21st century will be the century of natural gas for Azerbaijan."
Recalling that Azerbaijan has built oil and gas pipelines thanks to timely investments, Shaban gave the following assessment:
"As a result, oil and gas from other Caspian littoral countries are transported in transit through Azerbaijan. We will compensate for the decrease in oil production with transit revenues. Oil from Kazakhstan and Turkmenistan is transported through Azerbaijan. Turkmenistan has rich reserves of natural gas. The natural gas that will be produced in these places will be transported to Europe via Azerbaijan and Turkey in the future. It just takes time."