Azerbaijan sold 12 billion cubic meter gas to Europe in 2023, exports to reach 20 billion cubic meters a year by 2027.

The oil and natural gas rich country has 3 major pipelines connecting its resources to European countries like Georgia, with South Caucasus Pipeline (SCP).

The other major pipeline includes Trans-Anatolian Natural Gas Pipeline (TANAP), which goes through Turkiye and lastly Trans Adriatic Pipeline (TAP) which goes through Greece, Albania and finally to Italy.

Azerbaijan exported 23.9 billion cubic meter of natural gas in 2023:

Azerbaijan sold 12 billion cubic meter (bcm ) of its natural gas to Europe in 2023 alone, out of a total 23.9 bcm, that is 50% of its natural gas.

This was more gas to Europe in comparison to 2022, when around 11.4 bcm of a total 22.3 bcm of natural gas exports went to the EU, according to data from the Azerbaijan energy ministry.

This spike came after the Russia-Ukraine war, the Russian gas supply eruption caused significant lack of gas supply to European markets.

This energy crisis gave Azerbaijan leverage in overall exports to Europe.

Europe is a key export market, accounting for more than half of gas sales.

2024 report for gas exports from Azerbaijan to Europe:

According to a report published by zerocarbon-analytics.org/ Azerbaijan has agreed with the EU to increase gas exports to 20 billion cubic metres (bcm) a year by 2027, up from 12 bcm in 2023.

In mid-2024 gas exports began flowing to Slovenia and there are ongoing discussions about supplying Slovakia, Bulgaria and Czech Republic.

According to the energy ministry, exports rose more than 13% in the first seven months of 2024, reaching 7.5 bcm between January and July 2024, up from 6.6 bcm over the same period in 2023.

Azerbaijan is the 28th-largest oil and gas producer in the world, but due to immense demand of its gas resources, Azerbaijan is importing Russian gas for its own domestic use.

Gas and Oil rich economy:

The oil and natural gas rich Azerbaijan sits between two continents, Asia and Europe, it is the world’s 28th-largest oil and gas producer.

The country produced around 1 million barrels of oil equivalent per day in 2023. Oil and gas make up 98% of total energy supply, over 90% of exports and one-third of GDP.

Between 2000 and 2021 natural gas supply grew by 128%. Gas exports increased by 29,290% between 2006-2021.

During the next ten years the country is planning on expanding its gas production from around 37 billion cubic metres (bcm) to 49 bcm in 2033.

Azerbaijan has proven 2.6 Trillion cubic meters of natural gas reserves.

In March 2024 the EU and Azerbaijan reaffirmed their commitment to work together to develop the infrastructure required to increase gas exports through what is known as the Southern Gas Corridor.

The country’s economic heavily rely on the fossil fuel, thus making it vulnerable in the volatile global energy markets.

World Bank warned in a November 2023 report that “Azerbaijan’s development trajectory remains exposed to global energy markets’ volatility” and that the country will not be able to achieve strategic priorities outlined in Azerbaijan Vision 2030 if it remains reliant on oil and gas rents.

The World Bank states: “Remaining prey to commodity cycles and facing a depleting oil asset base, Azerbaijan’s economy will be tested by the headwinds brought by global decarbonization”.

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