International media put spotlight on new Azerbaijan-EU gas deal, credits Baku reliable role

By Azernews

By Vugar Khalilov

The European Union signed a memorandum of understanding (MoU) with Azerbaijan on July 18, intending to boost gas imports from the energy-rich South Caucasus country as the EU strives to lessen reliance on Russia.

The deal is anticipated to spur investment in pipelines and gas production, positioning Azerbaijan as an important European energy supplier.

The agreement signed by European Commission President Ursula von der Leyen and Azerbaijan President Ilham Aliyev, aims to bring "at least 20 billion cubic meters of gas annually by 2027" from Azerbaijan to the EU via the Southern Gas Corridor.

Following the signing ceremony, both presidents made remarkable statements that drew widespread attention from the international media.

French media

The signing of the Memorandum of Understanding on Strategic Partnership in the field of energy between Azerbaijan and the European Union (EU) was the focus of the French press. French print media and TV channels described Azerbaijan as the EU’s reliable strategic partner in ensuring energy security.

Articles on the history of energy cooperation between Azerbaijan and the EU emphasized that 27 EU members have requested assistance from Azerbaijan, which is Europe's biggest gas producer and exporter.

There is debate in Brussels about expanding one of the three gas pipelines that connect Baku to the old European continent. It should be mentioned that the gas corridor now contains three gas pipelines (South Caucasus, Trans-Anatolian, and Trans-Adriatic).

The project, which was completed in 2020, transported 8 billion cubic meters of natural gas to Europe in 2021, with the quantity predicted to reach 10 billion in 2022.

The press articles also underscore that the cooperation between Azerbaijan and the European Union in the energy sector is almost 15 years old, and the Azerbaijani oil and gas delivered to Europe via Georgia and Turkey is of great importance for the energy supply of the countries in that area. It was added that Azerbaijan is a reliable strategic partner of the European Union.

Italian media

Italian media described Azerbaijan as the EU’s strategic partner, citing European Commission President Ursula von der Leyen.

“You are indeed a crucial energy partner for us and you have always been reliable. You were a crucial partner not only for our security of supply but also in our efforts to become climate neutral. The Memorandum of Understanding that we have just signed makes our energy partnership even stronger,” von der Leyen said in the joint press conference with President Aliyev.

According to Italian RAINews, Ursula von der Leyen described the shift in perspective that the Ukraine conflict has placed on the global energy landscape, saying that "even before the brutal invasion of Ukraine, Russian gas supplies to Europe were no longer reliable".

Spanish-language press

Spain's EFE news agency, 20minutos news portal, SWI swissinfo.ch, the Spanish-language version of the international online platform of the Swiss Public Broadcasting Corporation (SRG SSR), profesionaleshoy.es, the first multi-disciplinary current affairs portal in Spain, Latin America's entornointeligente .com news portal published articles on Azerbaijan’s plans to increase its gas supply to the EU, which is searching for an alternative to Russian gas by 2027.

According to the Spanish-language press, Azerbaijan plans to double the volume of gas transported to the EU via the Southern Gas Corridor to 20 billion cubic meters by 2027, in response to the efforts of member nations to diversify their suppliers. As a result, Russian gas imports will be reduced, and Europe will benefit from a large contribution to the safe supply of gas.

German media

According to the German media (Tagesshcau, ZDF, BILD etc.), since the brutal war of aggression by the Kremlin ruler Vladimir Putin on Ukraine, the EU has been trying to reduce its dependence on Russian energy imports.

No additional gas has flowed via the Baltic Sea pipeline Nord Stream 1 to Germany since last Monday. The official justification was maintenance work, which the operating company estimates will last until July 21, but the federal government is already assuming that Russia will not restart gas deliveries via the pipeline after the maintenance and will have new "excuses" for this.

The agreement with Azerbaijan will help compensate for the cuts in Russian gas supplies and will make a significant contribution to Europe's security of supply, the reports say, citing the European Commission President.

US media

Leading American publications have also reported on Azerbaijan and the EU signing a Memorandum of Understanding on strategic energy partnership.

According to media reports, the EU is beginning a new chapter in its energy cooperation with its primary partner, Azerbaijan. The new arrangement assures secure and consistent gas supplies to Europe via the Southern Gas Corridor.

The new deal calls for Azerbaijan to boost its gas supply to Europe every year, with the goal of reaching 20 billion cubic meters by 2027.

Azerbaijan boosted its natural gas exports to European nations to 8.1 billion cubic meters in 2021, and the comparable indicator is predicted to be 12 billion cubic meters in 2022.

According to Brenda Shaffer, a professor at the United States Naval Postgraduate School and an expert on Caspian energy, while Azerbaijan gas alone cannot solve the EU's gas dependence on Russia, an additional 10 billion cubic meters of gas would be significant for Southern Europe and Western Balkan states such as Greece, Bulgaria, and Italy.

"Italy is weathering the current crisis better than many others in Europe, due to dedicated supplies arriving from the Southern Gas Corridor," she said.

Azerbaijan is truly taking a position at a time when Europe is in need, she added, but the country is aware of its geography, which borders both Russia and Iran.

"Azerbaijan aspires for strong integration with the West through energy, investments, and trade, yet does not see it as a zero-sum game," Shaffer said. She noted that Azerbaijan has begun to speed the development of numerous undeveloped gas reserves.

According to Shaffer, the fact that the agreement favors finance for the Southern Gas Corridor extension is critical, since public funding institutions have ceased funding for natural gas projects.

She believes that increased money from organizations such as the European Bank for Reconstruction and Development and the European Investment Bank would create a significant precedent.

Shaffer estimates that Azerbaijan's renewable-energy expenditures will free up 2 to 3 billion cubic meters of gas for exports in two to three years.

On July 18, von der Leyen stressed that this agreement does more than tap Azerbaijan's fossil fuels. "Azerbaijan has a tremendous potential in renewable energy," she said, particularly in offshore wind and green hydrogen. "Today, with our [memorandum], we are laying the ground for solid cooperation in that area. Gradually, Azerbaijan will evolve from being a fossil fuel supplier to becoming a very reliable and prominent renewable energy partner to the European Union."

The European Commission president stated that the EU has its sights set on far more.

"The European Union wants to work with Azerbaijan to build connections with Central Asia and beyond," she said. "We follow with great interest the discussions and the ideas about trans-Caspian connections."

These possibilities might include leveraging Central Asian energy resources, such as Turkmenistan's gas, and shipping commodities from the region via Azerbaijan, according to Shaffer.