We are also in negotiations with some other EU member states to start gas exports and increase existing supply volumes.
elchi reports that President Ilham Aliyev stated this at the 4th Shusha Global Media Forum.
“This year, we started gas supplies to Germany and Austria. This is part of our overall strategy to expand our position in the global, and especially the European, gas market. The European market is a premium market. Prices are more favorable here. Therefore, we are very interested in expanding our presence in the market. Currently, Azerbaijan exports its gas to 16 countries via pipelines. We rank first in the world in terms of the geography of pipeline gas supplies. We are not stopping there. We are currently negotiating with some other EU member states to start gas exports and increase existing supply volumes. In other words, we are receiving requests for both new supplies and the increase of volumes,” the head of state said.
According to the President, in today’s energy market, Azerbaijan’s gas as a reliable, predictable, and alternative source carries greater importance compared to previous years: “We have the potential to increase production and exports. Just a month ago, we started production at the Deep Gas project of the Azeri-Chirag-Gunashli field. Production will also increase in existing fields in accordance with the work program and investment portfolio.
Furthermore, significant work is being done in the field of renewable energy. These sources already allow us to save a significant amount of natural gas, and this figure will increase further in the future. We plan to reach 8 gigawatts of capacity from renewable energy sources by 2032. This will allow us to save several billion cubic meters of natural gas currently used in electricity generation, and that volume will be available for export.
Thus, we have two important advantages: increasing gas production and an existing market. Now the main issue is to expand and modernize the transport infrastructure that connects these two factors. The existing gas transport infrastructure was designed and built based on the scenario before 2022. The throughput capacity of the pipelines was determined taking into account the production forecasts and the field development strategy of that time. Because you can extract gas in 10 years if you want, or in 100 years. For us, it was more appropriate to keep production stable over decades, rather than investing more to produce more gas in a shorter period? Our strategy was built accordingly.”
the President noted that after the start of the Russia-Ukraine war, the demand for Azerbaijani gas in Europe increased sharply: “The European Commission approached us and asked us to increase production as quickly as possible, and we did so.
By the way, during the visit of the President of the European Commission, Ursula von der Leyen, to Azerbaijan, it was announced that our gas exports to the European Union have increased by 65 percent since 2022. This growth will continue in the future. Therefore, the expansion of the existing transport infrastructure is necessary. However, the main obstacle is the European Union’s Green Deal. European banks are no longer keen on financing fossil fuel projects. Therefore, the main question is: where can we attract financial resources to expand the transport infrastructure?”
The President of Azerbaijan added that increasing the throughput capacity of pipelines is also important: “Another, perhaps more important issue is long-term contracts. We discussed this very topic with the President of the European Commission, Ursula von der Leyen. We need long-term contracts. Because to increase production significantly, we must invest large amounts of capital. If after a certain period we are told ‘thank you, we no longer need your gas,’ then what should we do with the investments we have made? Therefore, there are two main issues: the conclusion of long-term contracts and the expansion of the throughput capacity of the gas transport system.
In addition, the diversification of markets is also of great importance. We have already started exporting gas to a market we had not even thought about before – Syria. In the future, we have the opportunity to expand gas supplies to neighboring countries via Syria. There is a great demand for energy resources in that region. In this regard, the most important issues for us in our relations with our partners in Europe are the signing of long-term contracts and working together to expand the existing gas transport system.”