European Commission proposes to ink gas deal with Azerbaijan

By Azernews

By Ayya Lmahamad

The European Commission has proposed the EU countries sign an agreement with Azerbaijan to increase natural gas imports and support the expansion of a pipeline for this, Azernews reports, citing Reuters.

The draft memorandum of understanding, which needs the approval of the governments of the parties involved and the content of which may change, is part of the EU's efforts to slash reliance on Russian gas following the war in Ukraine.

"The sides aspire to support bilateral trade of natural gas, including through exports to the European Union, via the Southern Gas Corridor, of at least 20 billion cubic meters of gas annually by 2027, in accordance with commercial viability and market demand," the statement reads.

Earlier, it was reported that the memorandum on energy is expected to be signed during the visit of the European Commissioner for Energy Kadri Simson to Baku on July 18.

EU and Azerbaijan are in active dialogue on increasing gas supplies amid the energy crisis. A joint statement on energy cooperation with the EU was signed more than ten years ago. The EU-Azerbaijan energy cooperation had reached a new level and is still ongoing within the framework of the Southern Gas Corridor. The EU places a high value on energy supply diversification, and the Southern Gas Corridor is particularly important in this regard.

To recall, with the completion of the TAP (Trans-Adriatic Pipeline) construction on December 31, 2020, Azerbaijan began commercial gas supplies to Europe via the Southern Gas Corridor. The Southern Gas Corridor is an initiative of the European Commission for a natural gas supply route from the Caspian and Middle Eastern regions to Europe. The route from Azerbaijan to Europe consists of the South Caucasus Pipeline, TANAP, and TAP.

Last year, TAP transported 8.1 billion cubic meters of gas to Europe. By late 2022, Azerbaijan plans to increase gas supplies to Europe to 9.1 billion cubic meters, and in 2023, the volume of gas supplies is expected to reach 11 billion cubic meters.