(MENAFN- AzerNews)
Nazrin Abdul
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The transformation of the Azerbaijani Economy over the past
three decades, driven largely by the strategic initiatives of
visionary leaders, has been remarkable. Central to this
transformation has been the visionary leadership of Heydar Aliyev,
the architect and founder of the independent Azerbaijani state. His
foresight and strategic decisions, particularly exemplified by the
signing of the "Contract of the Century" in September 1994 in Baku,
marked a pivotal moment in the nation's oil strategy. Under
President Ilham Aliyev's successful policies, these traditions are
evolving further.
The signing of the "Contract of the Century" positioned
Azerbaijan as the first state in the CIS region to achieve
significant consensus with major Western oil companies. This
agreement laid the foundation for international cooperation in the
Caspian Sea, particularly in the development and utilization of the
"Azeri-Chirag-Gunashli" fields within Azerbaijan's sector of the
Caspian.
Subsequently, under the direct initiative of Heydar Aliyev, the
Baku-Tbilisi-Ceyhan pipeline project was launched. This ambitious
project not only aimed to transport 50 million tons of Azerbaijani
oil annually but also solidified political decisions to designate
it as the main export pipeline. The definitive allocation of the
pipeline's main export role was formally established during the
Trabzon Summit of the Presidents of Azerbaijan, Georgia, and
Turkiye on April 26, 1998.
The successful implementation of these projects is evidenced by
the increasing volume of investments in the oil and gas sector. In
the first half of this year, investments in the oil and gas sector
amounted to 2996.2 million manat. According to the State Statistics
Committee, investments in the country's oil and gas sector
increased by 4.5% in January.
It should be noted that during the corresponding period of 2023,
this indicator was at the level of 2 billion 809 million manat. In
January-June of the current year, Azerbaijan transported 19,238.6
thousand tons of oil through oil pipelines, which is 2.1% less
compared to the previous year.
According to the State Statistics Committee, 75.2% of the
transportation was carried out through the Baku-Tbilisi-Ceyhan oil
export pipeline (BTC), and during the reporting period, 14,468.7
thousand tons of oil were transported through this pipeline, which
is 3.7% less compared to the previous year.
During the reporting period, 81.4% of the oil transported
through the BTC pipeline, or 11,773.9 thousand tons (a decrease of
6.3%), was Azerbaijani-produced oil, while 18.6% or 2,694.8
thousand tons (an increase of 9.8%) came from Turkmenistan and
Kazakhstan.
It is worth noting that last year, 39,753.2 thousand tons of oil
were transported through main oil pipelines, which is 5.2% higher
compared to the previous year. 75.9% of the transportation was
carried out through the Baku-Tbilisi-Ceyhan oil export pipeline
(BTC), and during the past year, 30,191.6 thousand tons of oil were
transported through this pipeline, which is 1.49% higher compared
to the previous year.
During the reporting period, 82.6% of the oil transported
through the BTC pipeline, or 24,950.9 thousand tons, was
Azerbaijani-produced oil, while 17.4% or 5,240.7 thousand tons (an
increase of 2.7%) came from Turkmenistan and Kazakhstan.
It should be noted that the Baku-Tbilisi-Ceyhan (BTC) pipeline
currently transports mainly oil produced from Azeri-Chirag-Gunashli
and condensate from Shah Deniz in Azerbaijan. Starting from the
Sangachal terminal near Baku, it passes through Azerbaijan,
Georgia, and ends at the Ceyhan marine terminal on the Turkish
coast of the Mediterranean Sea. In addition, BTC also transports
other regional crude oil and condensate volumes from the Caspian
(Kazakhstan, Turkmenistan, and SOCAR's volumes outside ACG).
It is also important to note that out of the total length of
1768 km of the laid pipeline, 443 km pass through Azerbaijan, 249
km through Georgia, and 1076 km through Turkiye.
During the same period of this year, an increase was also
observed in the transportation of natural gas through Azerbaijan's
main gas pipelines. Specifically, 20,540.7 million cubic meters of
gas were transported through Azerbaijan's main gas pipelines. The
increase observed in gas transportation through main gas pipelines
during the reporting period was 1.3% compared to the corresponding
period of the previous year.
It is reported that 55.6% of the gas transportation was carried
out through the South Caucasus Pipeline (SCP). Through this
pipeline, 11,418.9 million cubic meters of gas were transported. It
is worth noting that last year, Azerbaijan transported 39,806.9
million cubic meters of gas through main gas pipelines, with an
increase of 4.6% compared to the previous year's indicator.
54.8% of the gas transportation was carried out through the
South Caucasus Pipeline (SCP). During the reporting period,
21,800.1 million cubic meters of gas were transported through this
pipeline (a 4.8% increase compared to the 2022 indicator).
It should be noted that the South Caucasus Pipeline transports
gas produced from the Shah Deniz gas-condensate field in Azerbaijan
to Georgia and Turkiye. The South Caucasus Pipeline was
commissioned at the end of 2006 and gas from the Shah Deniz field
began to be transported as part of Phase I. Starting from the
summer of 2018, gas from the expanded South Caucasus Pipeline
associated with Phase II of the Shah Deniz field has been delivered
to Turkiye via the expanded Trans-Anatolian Pipeline (TANAP).
As a major partner of the European Union in the Southern
Caucasus region, Azerbaijan plays a decisive role in delivering the
gas resources of the Caspian Sea to the European Union market
through the Southern Gas Corridor. In this regard, the Southern Gas
Corridor is the largest infrastructure project that can meet the
EU's demand for gas and play a significant role in its energy
security. The expanded Southern Gas Corridor pipeline that passes
through Azerbaijan and Georgia to the Turkish border stimulates
employment opportunities and economic growth in transit countries.
In addition, the revenue from gas exports will contribute to the
socio-economic development of Azerbaijan, financing infrastructure
projects and improving public services. In this sense, plans to
increase gas exports to Europe through the Southern Gas Corridor
are of great importance for the region's energy security.
Today, Azerbaijan plans to export not only oil, natural gas, and
electricity to Europe but also hydrogen, including green hydrogen.
Natural gas is considered a cleaner alternative to coal and oil,
emitting fewer greenhouse gases and pollutants. By applying
advanced gas production technologies and strict environmental
regulations, Azerbaijan takes on the responsibility to minimize the
environmental impact of gas production and transportation. If the
EU's demand for natural gas continues to increase in the coming
years, this will be of special importance.
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