(MENAFN- AzerNews)
energy Drive Amidst Political Tantrums Image' Height='500'/>
Nigar Hasanova Read more
The 2022 Russian invasion of Ukraine sent shockwaves through
European gas markets, prompting a reevaluation of energy security
strategies. The conflict disrupted gas flows and heightened
concerns about reliance on Russian supplies. Thus, as Europe seeks
alternatives to balance its energy security, Azerbaijan emerges as
a significant player, making strides in the European market, even
despite some influences from the EU and the West on the
Azerbaijan-Armenia peace agreement process.
US Deputy Assistant Secretary for Energy Diplomacy, Laura
Lochman, also underscored the significance of the SGC in addressing
Europe's current energy challenge. She highlighted the success of
the SGC and envisions its expansion as a crucial element in
securing Europe's energy future.
“The European continent is going through an energy challenge
right now, which was provoked by Russia's illegal and unjustified
war in Ukraine. Thus, the European countries are trying very hard
to significantly reduce or eliminate their reliance on Russian
supplies as those are clearly not reliable sources. We all need to
diversify our sources of energy as well. The Southern Gas Corridor
has been playing a role historically, it was a huge project to
bring together the governments and the private sector to get the
SGC in place and now we see the benefits of it, and the success of
that and hope for its expansion in the future as well,” she
added.
As US Deputy assistant mentioned in response to the energy
crisis, Azerbaijan is actively engaging in partnerships with
European countries. As an example, Lithuania, recognizing
Azerbaijan's energy potential, views the nation as a crucial
partner for mutually beneficial opportunities.
“Azerbaijan is an important partner of Lithuania and we are
interested in searching for mutually beneficial opportunities. We
see Azerbaijan as a growing economic power with a huge energy
potential and aspirations to diversify,” said President of
Lithuania Gitanas Nausėda as he addressed the opening ceremony of
the Azerbaijan-Lithuania business forum in Vilnius.
The recent agreements between Azerbaijan and Serbia highlight
the growing importance of energy cooperation, emphasizing the
supply of Azerbaijani gas to diversify the European gas market.
“Memorandum of Understanding between the Ministry of Energy of the
Republic of Azerbaijan and the Ministry of Mining and Energy of the
Republic of Serbia on promoting cooperation between SOCAR and
Srbijagas, as well as agreement on gas sales between SOCAR and
Srbijagas were signed. The Minister of Mining and Energy of the
Republic of Serbia Dubravka Djedović Handanović said:
“Today, Serbia and Azerbaijan have opened a new chapter in their
economic and bilateral cooperation by signing a contract on the
volumes of gas that Azerbaijan will supply to Serbia. After the
supply of Azerbaijani gas to Serbia via the Bulgaria-Serbia
Interconnector, which is expected to be commissioned in the near
future, we are going to achieve our strategic goal of diversifying
our sources of supply for this energy source and further bolstering
our role as a transit country for gas distribution to Central
Europe. The signed contract outlines the delivery of 400 million
cubic meters of gas in the next year, and we expect these volumes
to increase further in the coming years.”
Touching on Azerbaijan's role in Central Europe's gas supply,
Hungary has been in talks with Azerbaijan for purchasing gas since
early last year. In a meeting with Azerbaijani Economy Minister
Mikayil Jabbarov in January 2023, Minister Szijjártó reaffirmed
Budapest's plans to count on Azerbaijani supplies as soon as
possible, however, added that substantial infrastructural
developments in Southeastern and Central Europe should be in place
to make it possible.
“Increased natural gas production in Azerbaijan could play an
important role in the energy security of Hungary and Central
Europe, but this requires the development of infrastructure in the
region, which in turn requires EU support,” Hungarian Foreign
Minister Péter Szijjártó said.
Azerbaijan's collaboration with Spain in renewable energy also
presents promising prospects. Memoranda of Understanding between
the EU and Azerbaijan indicate the potential for Spanish companies
to contribute to renewable energy initiatives in Azerbaijan.
Azerbaijan's Minister of Foreign Affairs emphasizes the country's
potential in supplying green electricity to the EU, fostering a new
dimension of cooperation.
"The pivotal Memorandum of Understanding in the field of energy
signed between the EU and Azerbaijan brings excellent prospects of
cooperation for our countries, not only because the Spanish Enagas
company has a significant participation in the Trans-Adriatic
Pipeline (TAP), a segment of the Southern Gas Corridor (SGC), but
also because this agreement contemplates the development of
renewable energy in Azerbaijan," the ministry said.
According to the ministry, as far as the energy sector is
concerned, the prospects are especially promising for the Spanish
Tecnicas Reunidas company, which is already well established in
Azerbaijan through its partnership with the State Oil Company of
Azerbaijan (SOCAR) in the modernization of the Heydar Aliyev Oil
Refinery and is looking forward to being involved in the next
phases of this project.
In terms of energy, key component to Italy's and Azerbaijan's
relationship is the Trans Adriatic Pipeline (TAP). The pipeline is
a key transport route that transports gas from Azerbaijan to
Apulia, Italy, via a 546-mile link and has a current capacity of
1.2 bcm a year.
The two countries made the announcement that they will begin
increasing the volume of shipments to 20 bcm by the end of 2027.
The TAP and new energy deals have gained increasing importance as
Italy strives to reduce its dependence on Russian energy resources.
Prior to the war on Ukraine, Italy sourced 40 percent of its
natural gas from Russia. Last year, Italy was able to bring that
down to 16 percent; however, Urso stated that the country plans to
completely abolish reliance on Russian gas by the end of 2023.
Especially given Italy's previous reliance on Russian gas,
increasing the TAP capacity and diversifying energy resources with
critical partners like Azerbaijan have become a significant
assurance in Italy's energy security.
In conclusion, the European Union and Azerbaijan jointly show
strong willingness to deepen cooperation in the connectivity
sector. Against the backdrop of disruptions in transportation
routes connecting Asia and Europe through the territory of Russia,
the key role of the Trans-Caspian International Transportation
Route (TITR), or Middle Corridor, is increasing significantly. And
the significance of the opportunities that stem from the new deal
have substantially grown specially since the start of the
Russia-Ukraine war. So the market access of Azerbaijan's energy in
Europe are expected to increase in the coming period.
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