Weekly review of Azerbaijan's oil & gas sector

Economy Materials 27 December 2021 09:58 (UTC +04:00)
Weekly review of Azerbaijan's oil & gas sector

BAKU, Azerbaijan, Dec. 27

By Khagan Isayev – Trend:

It was reported this week that electricity production in Azerbaijan in 11M2021 increased by 1.843 million kilowatt-hours compared to the same period last year - up to more than 25.26 billion kilowatt-hours.

At the same time, thermal power plants of Azerbaijan produced over 23.76 billion kilowatt-hours of electricity, hydroelectric power plants - 1.193 billion kilowatt-hours, wind power plants, solar power plants and power plants of a solid waste disposal plant - 307.1 million kilowatt-hours.

Also, this week it became known that to date more than 12.4 billion cubic meters of natural gas have been transported via TANAP and TAP.

Since the commissioning of the Azeri-Chirag-Gunashli (ACG) field, oil production there amounted to about 545 million tons. To date, revenues from the sale of gas from the block of ACG fields amount to about $155 billion.

In addition, it was reported that at the end of November 2021, about 7.3 billion cubic meters of natural gas were transported to Europe under long-term contracts and short-term spot transactions.

It was also noted that, according to forecasts, more than 34 million tons of oil will be produced in Azerbaijan in 2022-2024. Gas production in 2024 in Azerbaijan is envisaged at the level of 50 billion cubic meters.

Furthermore, it became known this week that the construction of the Khudafarin and Giz Galasy hydroelectric power plants (HPPs) with an installed capacity of 140 MW in the territories liberated from the occupation of Azerbaijan will be completed in the next two to three years. These hydropower plants will help transform the region into a "green energy" zone.

Another project with foreign investment is planned to be implemented in Kalbajar and Lachin. A request for information document was sent to investors to study interest in a wind power project with an installed capacity of 100 megawatts.

It also became known this week that Azerbaijan aims to increase the share of renewable energy sources (RES) in total electricity production from 17 to 24 percent in 2025 and up to 30 percent in 2030. It is planned to commission facilities at the level of 1,500 MW in the field of renewable energy.

In addition, it was reported this week that Azerbaijan exported more than 25.537 million tons of oil in 11M2021, which is 7.5 percent, or 2.074 million tons less than the same period last year.

In value terms, oil exports exceeded $12.285 billion, which is 37.46 percent more than in 11M2020

Moreover, the International Monetary Fund (IMF) predicted that hydrocarbon production in Azerbaijan will remain stable as the increase in natural gas production compensates for the decline in productivity of aging oil fields.