(MENAFN- AzerNews)
Nazrin Abdul
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Azerbaijan is uniquely positioned as the only country in the
South Caucasus with extensive hydrocarbon reserves, a sophisticated
fuel-energy infrastructure, and a fully self-sufficient energy
system. In addition, the country's expanding influence is not
limited to national and regional spheres but extends to a decisive
role on the global energy stage. Furthermore, Azerbaijan's
strategic position in transnational energy markets and its active
participation in Europe's energy security significantly bolster its
regional and global geopolitical and geoeconomic standing.
Azerbaijan's energy resources serve as the foundation for the
dynamic development of all sectors of the national economy. In
particular, these resources are crucial in shaping the country's
Gross Domestic Product (GDP) and other key financial and economic
indicators. Therefore, the policy of effectively harnessing natural
resources and optimizing fuel-energy potential is essential for
ensuring Azerbaijan's sustainable economic development and economic
security within the regional geopolitical and geoeconomic context
of the South Caucasus.
It is important to recognize that energy security is a
fundamental component of national security for any country. In this
regard, energy security encompasses the protection of the nation,
its citizens, society, and economy from both external and internal
threats through the reliable provision of fuel and energy
resources.
On July 18, during President Ilham Aliyev's participation in the
"Energy and Connectivity" Round Table at the
"European Political Community" Summit in Oxford,
he addressed several pivotal issues related to the energy
sector.
During the Summit, President Aliyev delivered a comprehensive
presentation on Azerbaijan's strategic objectives in the energy
sector and its plans for gas supply to Europe. He detailed future
initiatives to increase gas exports to Europe as part of
Azerbaijan's strategic partnership framework and discussed several
significant energy projects that have been successfully
implemented.
President Aliyev highlighted the goal of doubling Azerbaijan's
gas supplies to Europe by the end of 2027 in his speech.
"We are progressing towards this goal. In 2021, our gas supply
to the European continent was 8 billion cubic meters per year, and
this year this figure will approach 13 billion cubic meters. In
2021, total exports amounted to 18 billion cubic meters, and this
year we anticipate reaching 25 billion cubic meters, with more than
half of these exports directed to Europe," stated the
President.
Furthermore, it is notable that in the first half of this year,
Azerbaijan exported 11 billion 825 million 660 thousand cubic
meters of natural gas, valued at 4 billion 68 million 547 thousand
US dollars. This represents an approximately 8% increase in gas
exports compared to the previous year. In addition, from January to
June, natural gas accounted for 31.54% of Azerbaijan's total
exports.
Moreover, Azerbaijan increased its natural gas exports to Europe
by 12% in the first half of this year compared to the same period
of the previous year, reaching 6.4 billion cubic meters, which
constitutes 51% of total gas exports. In comparison, exports to
Turkiye totaled 5 billion cubic meters, representing 39% of total
gas sales abroad, while exports to Georgia amounted to 1.3 billion
cubic meters, accounting for 10% in total.
Compared to the previous year, the overall volume of
Azerbaijan's natural gas exports increased by approximately 6%. At
the Absheron gas-condensate field, where SOCAR and TotalEnergies
began production a year ago, over 1.5 billion cubic meters of gas
were produced during the Initial Production Scheme (EPS) phase.
Looking ahead, the phased development of the Abşeron field and
plans to escalate annual production from 1.5 billion to 6 billion
cubic meters will make a significant contribution to both national
and regional energy security, as well as to the energy security of
Azerbaijan's European partners.
Additionally, President Aliyev noted at the Summit that
Azerbaijan currently exports natural gas to eight countries, five
of which are members of the European Union. These countries are
Bulgaria, Greece, Italy, Hungary, and Romania. Furthermore, Georgia
and Serbia are candidate countries for EU membership.
In this context, President Aliyev also mentioned that
discussions are ongoing with Slovenia regarding gas cooperation,
intending to enter the Slovenian market soon.
This report highlights Azerbaijan's leading energy projects and
major infrastructure investments, which are crucial to the nation's
energy strategy.
Southern Gas Corridor - President Ilham Aliyev highlighted the
Southern Gas Corridor project as a significant strategic
initiative. Specifically, this energy corridor facilitates the
transportation of gas from the Shah Deniz field in the Caspian Sea
to the Mediterranean Sea. The Southern Gas Corridor project
comprises three main components: the extraction of gas from the
Shah Deniz field, transportation to Turkiye via the Trans-Anatolian
Natural Gas Pipeline (TANAP), and delivery to Italy through the
Trans-Adriatic Pipeline (TAP). This project, completed in December
2020, is now operational and plays a crucial role in ensuring
Europe's energy security through a 3,500-kilometer pipeline
network.
The signing of the "Contract of the Century" in 1994 was a
landmark achievement for Azerbaijan, establishing it as the first
country in the CIS region to reach a major agreement with leading
Western oil companies. This historic accord marked the beginning of
extensive international cooperation in the Caspian Sea, focusing on
the development and exploitation of the "Azeri-Chirag-Gunashli"
(ACG) fields, which are located in Azerbaijan's sector of the
Caspian Sea. This foundational agreement set the stage for
Azerbaijan's rise as a key player in the global energy market.
Building on this success, the Baku-Tbilisi-Ceyhan (BTC) Pipeline
project emerged as a pivotal development in Azerbaijan's energy
strategy. The BTC Pipeline, inaugurated in 2006, is a significant
infrastructure initiative that transports Azerbaijani oil from the
Caspian Sea across Georgia to the Turkish port of Ceyhan on the
Mediterranean coast. From Ceyhan, Azerbaijani oil is distributed to
various European markets, thereby establishing a critical route for
accessing global energy markets and reinforcing Azerbaijan's
position as a strategic energy supplier.
Together, the "Contract of the Century" and the BTC Pipeline
exemplify Azerbaijan's successful engagement with international
partners and its strategic approach to leveraging its hydrocarbon
resources for both regional and global energy security.
Shah Deniz Gas Field - Furthermore, the Shah Deniz Gas Field
represents Azerbaijan's largest gas field and serves as the primary
source for the Southern Gas Corridor project. Since its
exploitation began in 1999, the field has been a crucial asset for
gas exports to Europe. Looking ahead, expansion projects at the
Shah Deniz field are being developed with advanced technologies and
new investments.
Trans-Anatolian Natural Gas Pipeline (TANAP) - The
Trans-Anatolian Natural Gas Pipeline (TANAP) transports gas from
the Shah Deniz field across Turkiye to Europe. Operational since
2018, TANAP is a key component in the transportation of gas from
Azerbaijan to various European countries.
Trans-Adriatic Pipeline (TAP) - Additionally, the Trans-Adriatic
Pipeline (TAP) transports gas from TANAP to Italy and has been
operational since 2020. TAP represents the final segment of the
Southern Gas Corridor project and serves as a critical
transportation route for gas supplies to Europe.
In summary, President Ilham Aliyev's address at the Oxford
Summit reflects Azerbaijan's significant achievements in the energy
sector, its strategic energy projects, and its role in enhancing
Europe's energy security. Under the leadership of President Aliyev,
Azerbaijan is well-positioned to further expand its presence in
both regional and global energy markets.
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