(MENAFN- AzerNews)
By Zara Araz
On August 1, 2024, Azerbaijan marked a significant milestone in
its energy export strategy by commencing natural gas deliveries to
Slovenia. This development follows a Memorandum of Understanding
signed on July 17, 2024, between the State Oil Company of
Azerbaijan (SOCAR) and Geoplin, Slovenia's largest natural gas
provider. This agreement underscores Azerbaijan's growing influence
in the European energy market and reflects a broader strategy to
enhance regional energy security through diversification.
With Slovenia joining the list of European countries receiving
Azerbaijani gas, the total number of nations benefiting from
Azerbaijan's blue fuel now stands at nine. This list includes
Turkey, Georgia, Italy, Greece, Bulgaria, Romania, Hungary, and
Serbia. By the end of 2024, Azerbaijan is poised to surpass this
milestone, aiming to extend its gas exports to ten countries. This
expansion highlights Azerbaijan's increasing role as a key energy
supplier to Europe, a region historically reliant on Russian
energy.
The new partnership with Slovenia is a strategic move for SOCAR,
reinforcing its position in the European market and opening
opportunities for further collaborations in energy projects. The
initial phase of this partnership involves the transportation of
Azerbaijani gas, with plans including fuel diversification,
extended delivery to other regions, and the establishment of energy
sales networks across Central and Eastern Europe.
Azerbaijan's capacity to meet growing European demand is
bolstered by significant increases in its gas production. In the
past two years, Azerbaijan's gas production potential has risen by
approximately 4-5 billion cubic meters annually. In the first half
of 2024 alone, gas production exceeded 25.1 billion cubic meters,
with nearly 60% directed towards foreign markets. This amounts to
12.7 billion cubic meters in exports, a 6% increase from the same
period in the previous year. Notably, exports to Europe have surged
by 10% compared to 2023.
To accommodate the growing volume of gas exports, the Southern
Gas Corridor consortium is investing in expanding the
Trans-Adriatic Pipeline (TAP). The pipeline expansion, set to
increase capacity by 10 billion cubic meters over the next five
years, necessitates significant infrastructure upgrades. TAP's
first expansion phase, costing 132 million euros, will be completed
by 2025, adding 1.2 billion cubic meters of additional capacity.
Further expansion plans will aim to elevate TAP's capacity to at
least 25 billion cubic meters by 2027.
Azerbaijan's gas reserves are substantial, with confirmed
reserves of around 2.6 trillion cubic meters, sufficient for at
least 100 years of both domestic use and export. This robust
reserve base supports Azerbaijan's role as a long-term energy
supplier for Europe. The planned increase in gas production by 40%
from 2024 to 2027, coupled with expanded pipeline capacity, will
enable Azerbaijan to further extend its supply network to countries
such as Slovakia, Moldova, and Austria, potentially covering 40% of
the European Union's energy needs.
Looking ahead, Azerbaijan is also positioning itself to export
"green energy" to Europe. Plans are underway to leverage the "Black
Sea" corridor to introduce a substantial portion of Azerbaijan's
green energy potential, estimated at over 150 GW. This move aligns
with Europe's increasing focus on sustainable energy sources and
enhances Azerbaijan's role in the global energy transition.
Azerbaijan's expanding gas export network signifies a pivotal
shift in European energy dynamics, reflecting both the country's
growing influence and the broader trend toward diversification of
energy sources. As SOCAR and Geoplin deepen their collaboration,
Azerbaijan's strategic investments in production and infrastructure
are set to reshape the energy landscape, ensuring enhanced energy
security and stability for Europe in the years to come.
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