Economist: Azerbaijan Is Among Main Sources Of Gas Production Growth


(MENAFN- AzerNews)

Abbas Ganbay Read more

The British publication The Economist, in its special edition of Energy Outlook 2024, informs that Azerbaijan is among the main sources of gas production growth, Azernews reports.

Oil and gas production, supported by high prices, will continue to grow.

Against the backdrop of high commodity prices and the European Union's efforts to replace gas supplies from Russia, new investment in fossil fuel production will continue in 2024.

The report says global natural gas production is expected to grow at a 2.2 percent annualised rate.

"The main sources of production growth will be North America, Norway, the Middle East, North Africa, Azerbaijan, Turkmenistan, China, Australia, and Mozambique," the magazine said.

Liquefied natural gas exports to the U.S. will reportedly grow in the coming years as export opportunities expand. This will support growth in domestic production, which is projected to grow by 1.9 percent in 2024.

"We project that Russian gas exports will begin to recover, albeit modestly, starting in 2024. Oil prices are expected to remain high in 2024. OPEC, led by Saudi Arabia and Russia, shows determination to cut production to support them, although they have fallen below their peak in 2022," the report said.

It should be noted that Azerbaijan is one of the countries that exports the most gas to Europe, and it is moving forward in this increasing direction.

To recall, back in 2022, Azerbaijan exported 11.4 Bcm of gas to Europe, and in 2023, this volume exceeded 12 Bcm.

Azerbaijan exports gas to Europe from the Shah Deniz field via the Southern Gas Corridor and has plans to raise exports to 20 Bcm/year by 2027 under a Memorandum of Understanding agreed with the European Commission in July 2022.

Moreover, according to Azerbaijan's Energy Minister, Azerbaijan's gas export increased by 5.3% in 2023.

“11.8 bcm of gas was exported to Europe, 9.5 bcm to Türkiye, and 2.5 bcm to Georgia," minister Shabazov added.

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