(MENAFN- AzerNews)
Ulviyya Shahin
Read more
Azerbaijan, a significant player in the global energy market due
to its abundant natural gas reserves, has experienced notable
shifts in its export dynamics in the first half of this year.
According to recent data, Azerbaijan exported 11.825 billion cubic
meters of natural gas, amounting to a total export value of $4.068
billion.
While the volume of gas exports saw a modest increase of 7.9%
compared to the previous year, the export value plummeted by 49.3%
during the same period. Notably, Natural gas contributed 31.54% to
Azerbaijan's total exports from January to June.
Azerbaijani economist Rashad Hasanov said
Azernews that the increase in gas exports follows
a predictable trajectory, driven by strategic investments in export
infrastructure and heightened demand for Azerbaijani gas,
particularly in the European market amid ongoing geopolitical
tensions like the Russia-Ukraine conflict.
“This expansion is further bolstered by the development of new
fields such as Absheron, which is poised to sustain growth over the
next decade.”
According to him, in terms of its economic impact, expanding gas
production offers a partial buffer against the significant
challenges Azerbaijan faces in other sectors.
“Despite past shortcomings in fostering a competitive and
diversified economy, the growth in gas production will mitigate
fiscal contraction amidst declining oil revenues. Moreover, it will
bolster economic activity supported by government expenditures,
while serving as a critical revenue stream for the reconstruction
efforts in recently liberated territories.”
“However, Azerbaijan must continue to diversify its economic
base and enhance competitiveness beyond energy exports to ensure
long-term economic resilience and sustainability,” R. Hasanov
concluded.
Looking at the expert's opinion and the analysis of economic
results in the global market, we can note that Azerbaijan's natural
gas export trends in the first half of this year reflect the
complexities of global energy markets.
While increased export volumes signify market demand and
production capabilities, the drastic decline in export value
underscores the challenges posed by volatile energy prices.
Strategic measures focusing on economic diversification and
infrastructure development are crucial to mitigate risks and
capitalize on opportunities in Azerbaijan's energy sector.
While Azerbaijan remains a significant natural gas exporter,
navigating the dynamics of global energy markets requires adaptive
strategies to ensure sustainable economic growth and resilience in
the face of market uncertainties.
MENAFN19072024000195011045ID1108459194
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.