Energy problem puts Azerbaijan’s role center stage in ensuring EU energy security

By Azernews

By Ayya Lmahamad

Azerbaijan's important role in ensuring Europe's energy diversification is out of the question and this issue has been repeatedly mentioned.

Baku Energy Week is the main event for the oil, gas, and energy sector in the Caspian region. The participation in it of influential politicians and individuals, as well as the opinions expressed, are a clear indication that Azerbaijan’s power and prestige are increasing day by day. Nowadays, it is obvious that Azerbaijan is making a crucial contribution to global efforts to maintain energy security.

With the completion of the Trans-Adriatic Pipeline construction on December 31, 2020, Azerbaijan began commercial gas supplies to Europe via the Southern Gas Corridor. It is worth noting here that last year TAP transported 8.1 billion cubic meters of gas to Europe, by late 2022, Azerbaijan plans to increase gas supplies to 9.1 billion cubic meters and to 11 billion cubic meters in 2023. In this regard, the West has repeatedly voiced the wish to increase Azerbaijan’s gas supplies via the Southern Gas Corridor. President Aliyev stated that for this, there is a need for more investment and new contracts, in order to increase the country's production and supply of natural gas. Moreover, the West also speaks about the positive prospects of attracting large volumes of Turkmen gas through Azerbaijan to Turkey and Europe.

In this regard, earlier Iranian Oil Minister Javad Owji stated that Iran, Azerbaijan, and Turkmenistan have reached agreements to double the amount of natural gas swap under the deal reached in November. To recall, on November 28 last year, the three countries signed in Ashgabat a trilateral agreement on a gas swap. The agreement envisaged deliveries of 1.5 to 2 billion cubic meters of gas each year, with Turkmenistan supplying gas to Iran and Iran delivering an equal quantity of gas to Azerbaijan. Thus, now the annual volume of gas supplies may increase to at least 3 billion cubic meters. Since the beginning of 2022, Azerbaijan has imported 1.5 billion cubic meters of Turkmen gas through Iran.

At the same time, on June 3, Azerbaijan and Iran signed a memorandum of understanding. Azerbaijan’s Economy Minister Mikayil Jabbarov has said that the signed memorandum will contribute to the expansion of cooperation between the two countries in the field of natural gas. Moreover, Iran and Azerbaijan will jointly develop the Azerbaijani gas project Shah Deniz.

A deal with bp

The country’s Energy Ministry and bp signed an addendum to the implementation agreement that they had previously signed in June 2021. The agreement was signed in Shusha within the agenda of Baku Energy Week. The document represents the next step to finalize the joint work towards the realization of the 240MW solar project, called Project Shafag in Jabrayil.

“As a result of our one-year joint activities and fruitful cooperation, we have laid a foundation for the implementation of Project Shafag, which can satisfy the interests of all parties,” the country’s Energy Minister Parviz Shahbazov said.

The minister added that this document once again demonstrates Azerbaijan’s determination to the implementation of this project and the commitment of Azerbaijan and bp to cooperation on renewable and low-carbon sources of energy.

“We believe that Project Shafag, the first example of a foreign partnership in the green energy zone, will give an impetus to our continued cooperation with bp on green energy and decarbonization,” he said.

In turn, bp’s Regional President for Azerbaijan, Georgia and Turkiye Gary Jones noted that the signed document brings Project Shafag closer to the final investment decision.

“We are confident that this new approach will lead to the decarbonization of oil and gas operations including ours. This is exactly in line with what we aim to achieve globally by working to significantly reduce our operational emissions, aiming for net-zero by 2050 or sooner,” he said.

A deal with Masdar

On the same day in Shusha, the country’s Energy Ministry and the UAE’s Masdar company signed an implementation agreement on the evaluation, development and implementation of 1GW utility-scale onshore solar and 1GW wind energy projects in Azerbaijan, as well as an implementation agreement on evaluation, development and implementation of offshore 2GW integrated wind and green hydrogen.

Within the agreement on onshore wind-solar energy projects it is planned to study the network capabilities for transmission of a certain part of the energy to the country’s energy system in detail, take necessary measures to strengthen the network, as well as implement the relevant processes for the export of electricity. At the same time, the agreement on offshore wind and hydrogen energy projects included complex measures to create wind power for production and export purposes, decarbonization, hydrogen production, and export.

The agreements were signed in accordance with the green energy policy, which defines renewable energy sources as a strategic priority for the country’s development.

“These 4,000 MW solar, wind and green hydrogen projects, being the largest renewable energy production capacity in the region and in our energy history, provide ample opportunities for the development of Azerbaijan as a green growth country, green energy producer and exporter, as well as allow for involving multibillion-dollar green investment. Some of these projects are planned to be implemented in the liberated areas, which will contribute to the development of the region in the green energy zone concept with zero emissions. The development of offshore wind power capacity and the production of hydrogen also open a new page in the history of the Caspian Sea through Azerbaijan,” Shahbazov said.

The agreements once again demonstrate Azerbaijan’s readiness and ability to produce and export even larger volumes of natural gas.