President: Azerbaijan reliable energy supplier to int’l market [UPDATE]

By Azernews

By Ayya Lmahamad

President Ilham Aliyev has described Azerbaijan as a reliable supplier of energy resources to the international market.

He made the remarks during his speech at the 8th ministerial meeting of the Southern Gas Corridor Advisory Council held in Baku on February 4.

“Azerbaijan has always been a reliable supplier of energy resources to the international market. We [have] started our oil exports since 2006, already for many years and without any disruption, without any violation of the contract, without any political agenda behind our energy policy. Our energy policy always was very open, transparent, business-and-result-oriented, and led to cooperation and mutual support,” he said.

The president noted that after the completion of the Southern Gas Corridor, Azerbaijan managed to increase its export to international markets, including, European markets.

He added that Azerbaijan exported 19 billion cubic meters of natural gas last year, with 8.5 billion going to Turkey, nearly 7 billion going to Italy, and the rest going to other members such as Georgia, Greece, and Bulgaria.

“This year definitely we will export more than last year. Of course, there is a huge potential, especially now, when the situation on the gas market is not very stable and also, the crisis is very volatile. I think we need a joint plan in our future in coordination and good spirit,” he said.

Aliyev added that the proven gas reserves of Azerbaijan are 2.6 trillion cubic meters.

“For the biggest is Shah Deniz  - 1 trillion. I am sure there will be more. Because to look at our experience, with respect to oil and gas development, we always see bigger reserves and it was anticipated in the beginning of our journey due to new discoveries, and also due to new technologies,” he said.

Noting that Shah Deniz, Azerbaijan's main gas field, is the only contributor to the Southern Gas Corridor, he added that other projects are also in the process.

“Absheron stage 1 will produce 1.5 billion cubic meters, not a big amount, but I think it’s substantial for some countries. And that can also satisfy our own growing demands and also provide export opportunities. Another big field, which we hope will also produce good results is Babak with estimated reserves of 400 billion cubic meters. Umid at least 200 billion cubic meters,” he said.

The president also expressed high hopes for one of the country's oldest oil and gas fields, Azeri-Chirag-Gunashli.

“Its deep gas section, which I hope will soon be also in operation and it’s also hundreds of billions of cubic meters of gas, and can be extracted I think within a short period of time,” he said.

Domestic demand

Aliyev emphasized that the domestic demands are also growing, first of all, due to the growing population.

He added that last year the non-energy industry grew by almost 20 percent, which is a record figure of growth.

“And also, we will need hopefully very soon additional volumes of gas to gasify the area which has been liberated during the Patriotic War of 2020,” he said.

Stressing the need to return the former refugees to these territories, Aliyev stated that this process will start this year.

“Therefore, we will need an additional gas for our own consumption. Here we come to a very important point of our concentration on renewable sources of energy,” he said.

The president also noted that Azerbaijan is one of only a few countries in the world that exports crude oil, natural gas, petrochemicals, oil products, and electricity.

Electric energy potential

Speaking about the country’s electric energy potential, Aliyev noted that it was mainly oriented for domestic consumption.

“We largely invested in electric infrastructure, and I can say that, based on Davos World Economic Forum assessment, the accessibility to energy in Azerbaijan is with this rating we are number two in the world,” he said.

Aliyev stressed that Azerbaijan invested a big amount of money and actually modernized almost completely the country’s electric energy lines and created new power stations.

“For instance, very soon we will inaugurate a new power station in Gobu district of Baku with the capacity of almost 400 megawatts,” he said.

The president recalled that a groundbreaking ceremony for the first renewable energy project, a 240 MW wind power station that will be entirely financed by a foreign company ACWA Power, was held last month.

“Also, I would like to say that our electric energy is needed for the regional markets and probably, we can go now even further, now to Europe, because today we export electric energy to four neighbouring countries - Turkiye, Russia, Georgia and Iran. The capacity is growing. So, the more renewable sources of energy we have in Azerbaijan, the more we will save gas for export,” he said.

He stated that this wind power station will save Azerbaijan approximately 200 or 300 billion cubic meters of gas, which is a significant amount that can make a significant difference for those countries with low consumption.

Green energy strategy

He noted that the country's "green energy" strategy is nearing completion in terms of both assessment and planning. He stressed that the Energy Ministry had already prepared a conceptual outlook for a "green energy" zone in Karabakh and Eastern Zangazur in collaboration with international companies.

He added that the international assessment of the potential for renewable sources in Karabakh and Eastern Zangazur is about 7,200 MW in wind energy and more than 2,000 MW in solar energy.

“I also would like to inform you that our strategic partner in oil and gas - BP shows big interest in working on the liberated territories, particularly, in the region of Jabrayil. We are already in the phase of negotiations with BP on the construction of the renewable source of energy there - more than 200 megawatts,” he said.

The president also stated that Azerbaijan has a special Caspian Sea assessment program, with a technical potential of more than 150,000 MW. He added that preliminary proposals for the development of this potential have already been received from leading international companies.

“I think it will be very natural, because, first, Azerbaijan already for many years proved itself as a reliable source of energy. As I said, we export all kinds of energy resources. We have diversified electric lines within the country and connecting us with all our neighbors. We have export markets just next door, and growing export markets,” he said.

“The country like Azerbaijan with huge resources of oil and gas and renewable potential, we understand our responsibility. And I can tell you that we will act in a responsible way in the future, in order to create better opportunities,” Aliyev added.