Azerbaijani gas enters new markets
By Sabina Alizade
Starting August 1, 2024, the State Oil Company of Azerbaijan Republic (SOCAR) began supplying natural gas to Slovenia. This event marks a significant milestone in strengthening energy cooperation and Azerbaijan's position in the European market. Slovenia has become the ninth country to join the Azerbaijani gas pipeline network, alongside Turkey, Georgia, Italy, Greece, Bulgaria, Romania, Hungary, and Serbia.This supply is carried out under an agreement signed between SOCAR and Slovenia's largest gas company, Geoplin, on July 17, 2024. The agreement underscores Azerbaijan's growing influence as a key energy supplier in Europe. Slovenia's inclusion in the supply network demonstrates Azerbaijan's strategic interest in diversifying its export markets.
In 2023, Azerbaijan exported 23.8 billion cubic meters of gas, which is 5.3% more than the previous year. Of this volume, 11.8 billion cubic meters were delivered to Europe, marking a 3.5% increase. It is expected that in 2024, Azerbaijan's gas exports will reach 25 billion cubic meters, with 13 billion cubic meters supplied to Europe. These figures highlight the increasing demand for Azerbaijani gas and its importance as a major supplier to the European market.
For Europe, the supply of Azerbaijani gas is crucial in ensuring energy security and diversifying supply sources. In the face of current geopolitical challenges, EU countries are seeking ways to reduce their dependence on traditional suppliers like Russia. Expanding gas supplies from Azerbaijan to Slovenia and other European countries helps achieve this goal, enhancing the region's energy independence.
SOCAR and Geoplin intend to continue their long-term cooperation in gas supply. This partnership not only strengthens economic ties between the countries but also opens new opportunities for investments in infrastructure and technological innovations, contributing to the further development of the energy sector in Slovenia.
Economic expert Vugar Bayramli stated that SOCAR has started exporting blue gas to Slovenia. Although there is currently no data on exact supply volumes, it is expected that the agreement will allow for an increase in exports, depending on the capacity of interconnectors between Greece and Bulgaria.
"Azerbaijan increases its blue gas exports to Europe every year. Since 2020, we have been transporting gas to Europe, and last year the volume reached about 12 billion cubic meters. This year, it is expected to grow to 13 billion cubic meters," Bayramly noted. "Slovenia's purchase of Azerbaijani gas will lead to an increase in the overall volume of blue gas supplied to the European Union."
The expert emphasized that Azerbaijan's relations with the Balkan countries have always been strong. Romania, Bulgaria, and Serbia already receive Azerbaijani gas. The commissioning of the Greece-Bulgaria interconnector aims to transport Azerbaijani gas to Eastern European countries. This cooperation deepens strategic relations with these countries.
"Gas supply to Slovenia affects the volumes exported to the EU. The Southern Gas Corridor has a capacity of 31.5 billion cubic meters. Increasing the capacity of interconnectors will enhance the route of Azerbaijani gas in Europe. We are witnessing the diversification of blue gas exports, and buyer countries can now receive gas from multiple sources," Bayramly added.
Economic expert Emin Gharibli highlighted the strategic importance of Eastern European countries, especially the Balkans. "By exporting gas to Slovenia and other countries, Azerbaijan secures a long-term market," he said. "Slovenia borders Austria and other countries, opening up opportunities for export to other European states."
"With the increase in export volumes, Azerbaijan strengthens its reputation as a reliable supplier. This creates political and economic dividends for the country," Gharibli added. "The growing reputation of Azerbaijan is also important for Central Asian countries, which will use its territory to transport their energy resources to Europe."
Gas exports to Europe contribute to Azerbaijan's integration with the European market and strengthen the region's energy security. This confirms Azerbaijan's growing importance as a key player on Europe's energy map.
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