(MENAFN- Trend News Agency) BAKU, Azerbaijan, Feb.3. The meeting of the
Southern gas Corridor Advisory Council will be a great opportunity
to both look back at how this project has helped the EU during this
unprecedented energy crisis, and to reflect together on the next
steps of the enhanced energy cooperation, Kadri Simson, the EU
Commissioner for Energy, said in an exclusive interview with
trend .
'A central topic in our discussions will be the expansion of the
Southern Gas Corridor. As you know, this is a project supported via
our REPowerEU plan, and our new Memorandum of Understanding on a
Strategic Partnership in the Field of Energy with Azerbaijan. We
aim to increase its capacity to 20 billion cubic meters annually as
of 2027. On top of the political support, we are now also exploring
with the EBRD the possibility of providing financial support to
facilitate its expansion,' she said.
The EU Commissioner also expect that this year's meetings will
focus prominently on green energy and the clean energy
transition.
'This is an important area of mutual interest both for
Azerbaijan and for the EU, as set out in our recent MoU. The EU is
ready to further support Azerbaijan in its green transition,
including through the Economic Investment Plan,' Kadri Simson
added.
Project on increasing gas supplies from
Azerbaijan
Simson said EU is aware that transmission system operators
(TSOs) in Bulgaria, Romania, Hungary, and Slovakia are considering
using existing and new infrastructure as a new corridor for
importing natural gas from Azerbaijan.
'Central-Eastern and South-Eastern Europe are amongst the most
dependent regions in Europe when it comes to gas imports from one
single source. At the same time, the diversification of supplies,
routes and sources have been significantly improved in the past few
years, thanks to the EU infrastructure policy, the realisation of
Projects of Common interest under the TEN-E, and in some cases
financial support through the Connecting Europe Facility and other
instruments. Nevertheless, if there is a market interest, the
Commission certainly supports projects that could further help
diversify gas supplies in the region,' the Commissioner
explained.
Simson pointed out that at the height of the energy crisis last
year, the SGC proved to be a crucial source of piped gas supply for
Europe.
'Gas volumes delivered to the EU via the SGC in 2022 increased
from around 8 billion cubic meters to 11.4, therefore by more than
40% compared with 2021. Azerbaijan has proved to be a reliable
energy partner for the European Union over the past years.
Therefore, I am glad to note that the expansion of the SGC has
strong political support from the EU and its Member States. As
Commission, we are trying to facilitate the process. We are in
regular contact with all concerned stakeholders: Governments of
transit and destination countries, international financial
institutions, companies. Of course, for the project to move forward
we also hope for a successful market test for the Trans Adriatic
Pipeline section of the SGC,' she said.
Kadri Simson noted that in parallel, the Commission is also
working in close cooperation with the Member States to make the
joint purchasing of gas a reality.
'Demand aggregation will be the first step in this process and
we trust this will help ensure optimal demand conditions to our
reliable supplying countries,' she added.
Cooperation on green energy
The Commissioner pointed out that the EU has long supported
Azerbaijan's energy transition efforts via our EU4Energy programme
and dedicated technical assistance and investments on energy
efficiency.
'The two laws on renewable energy sources and energy efficiency
adopted by Azerbaijan in 2021, are a clear example of commitment,
and the upgrading of energy-efficient streetlights in Ganja - the
second largest city of Azerbaijan – is a good example of how
EU-backed programs can work in practice. But I trust that this year
we will take our long-term sustainable energy partnership, as set
out in our MoU, even further. Azerbaijan has a strong interest in
accelerating the deployment of renewable energy and the
decarbonisation of its economy. Crucially, we will continue to
support reforms and green investments that contribute to
Azerbaijan's economic diversification and energy transition. To
this aim, we have proposed to establish a multi-country Working
Group on the export of renewable electricity under the EU4Energy
programme, which we hope Azerbaijan will join. This is a key step
to advance technical cooperation on this important matter and
prepare the ground for possible future investments in renewable
energy, including under the EU's Economic and Investment Plan,' she
said.
Simson noted that EU will also continue to work with Azerbaijan
towards the adoption of an ambitious Long Term Low Emission
Development Strategy before the Global Stocktake of the Paris
Agreement this year.
'This would pave the way to accelerating Azerbaijan's
decarbonisation, and also ensure predictability of investments. In
the EU, we have shown that setting a climate-neutrality target
drives decarbonisation while providing investors with much-needed
certainty,' she added.
Trans Caspian Gas Pipeline
Simson believes that all the conditions must be in place for the
envisaged expansion of the SGC to be delivered on time by 2027 and
this starts from the production outlook.
'We are looking with great interest at possible Trans-Caspian
gas cooperation projects and are committed to engaging with all the
relevant stakeholders in the region. The Advisory Council
ministerial meetings will be an important opportunity to do so,'
the EU Commissioner concluded.
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