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Baku shapes Europe's energy future: Azerbaijan as hub for fossil fuels and renewables

Politics Materials 4 April 2025 09:50 (UTC +04:00)
Baku shapes Europe's energy future: Azerbaijan as hub for fossil fuels and renewables
Laman Zeynalova
Laman Zeynalova
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BAKU, Azerbaijan, April 4. The 11th ministerial meeting of the Southern Gas Corridor Advisory Council and the 3rd ministerial meeting of the Green Energy Advisory Council are taking place today in Baku. These meetings reaffirm Azerbaijan’s growing role in ensuring Europe’s energy security, a position strengthened by President Ilham Aliyev’s energy strategy, which integrates both traditional and renewable energy sources.

The meetings are attended by representatives from 24 countries, including Azerbaijan and the EU, seven international financial institutions, and 42 energy companies. High-ranking officials, including ministers and deputy ministers, are participating in discussions focused on energy cooperation and future developments.

The Southern Gas Corridor Advisory Council has been held annually since February 2015 and has become a key platform for making strategic decisions on strengthening Europe’s energy security. Each year, more European countries have shown interest in accessing Azerbaijani gas or increasing their supply volumes. Today, Azerbaijan supplies gas to 10 European countries through the Southern Gas Corridor.

At last year’s SGC ministerial meeting, President Ilham Aliyev emphasized that the corridor is an energy security and cooperation project, as it would not have been possible without collaboration between the countries along its route.

The Southern Gas Corridor plays a crucial role in Europe’s energy security by supplying Azerbaijani gas to European markets. Its current capacity is 10 bcm per year, but gas-importing countries have expressed interest in increasing volumes. In this context, Azerbaijan and the EU signed a memorandum to expand the corridor’s capacity to 20 bcm per year by 2027.

In an exclusive interview with Trend, European Commissioner for Energy and Housing Dan Jørgensen highlighted the EU’s cooperation with partner countries to increase gas deliveries through the corridor.

"This is even more important as we aim to phase out our dependency on Russian fuels and diversify our energy supplies. The Southern Gas Corridor Advisory Council is an important platform where we track progress on these goals, ensure the operations of the Southern Gas Corridor, address energy security challenges, and work towards achieving net-zero emissions by mid-century," he said.

European countries recognize the need for concrete steps to expand this critical infrastructure, particularly for the more vulnerable regions of the continent. Romanian Energy Minister Sebastian-Ioan Burduja emphasized that specific actions are necessary to extend the corridor into Southeastern Europe and the Balkans.

"We have all the arguments in favor of the Southern Gas Corridor expansion process. There is a clear need for substantial additional volumes and new suppliers, especially in the countries of Central and South-Eastern Europe. Given the undeniable success of this gas transport infrastructure and its particular importance in strengthening Europe's energy security, concrete steps are needed more than ever in the implementation of the Southern Gas Corridor expansion plans that also take into account the states of South-Eastern Europe and the Balkans, in order to secure the connection of these regions to the Southern Gas Corridor, especially since there is a possibility of capitalizing on the gas transport infrastructure in these countries. For this to become a reality, there is a need for increased cooperation between our countries, immediate actions and concrete steps in the plans to expand the Southern Gas Corridor," he said.

One of the key conditions for increasing the corridor’s capacity is the signing of long-term gas supply contracts. In this context, Moldova’s Prime Minister Dorin Recean recently expressed his country’s strong interest in securing long-term gas contracts with Azerbaijan.

"We strongly support the expansion of the Southern Gas Corridor (SGC) and its role in enhancing European energy security. Moldova seeks to consolidate its energy independence by expanding its connections to alternative supply routes, including through partnerships facilitated by SGC," said Recean.

Bulgaria has also repeatedly expressed interest in increasing gas imports from Azerbaijan, while Azerbaijan has consistently reaffirmed its commitment to meeting the growing demand of its partners.

Speaking at a press conference with North Macedonian President Gordana Siljanovska-Davkova on March 11, President Ilham Aliyev noted that Azerbaijan currently exports natural gas to 12 countries, including 10 in Europe. In 2023, Azerbaijan exported 25 bcm of gas, while also meeting domestic demand. Aliyev also highlighted Azerbaijan’s plans to expand gas supply routes.

"Ten out of these 12 countries are European nations. Last year, Azerbaijan exported 25 billion cubic meters of gas to foreign markets. Of course, we produce more than this. We also meet local demand. However, expanding the scope and geographical reach of our gas exports is also on the agenda. Europe needs Azerbaijani gas. The Declaration on Strategic Partnership in the field of energy between the European Union and Azerbaijan, signed in Baku about three years ago, is a clear manifestation of this. Today, Azerbaijani gas contributes to the energy security of many European countries, and we have always attached great importance to the requests of our European partners. In other words, bilateral cooperation in the energy sector is very important to us, and I do hope that this practical cooperation will pave the way for collaboration in other areas as well," President Ilham Aliyev said.

In terms of resources, in addition to the Shah Deniz field, which currently supplies gas through the Southern Gas Corridor, Azerbaijan is actively developing the Absheron field, the country’s second-largest natural gas reserve after Shah Deniz.

Alongside traditional energy development, Azerbaijan is investing heavily in renewables. On April 4, the Green Energy Advisory Council will hold its second ministerial meeting focused on energy transmission and trade between Azerbaijan, Türkiye, Georgia, and Bulgaria. A key topic will be the Caspian-Black Sea-Europe Green Energy Corridor, including the construction of the Black Sea Energy submarine cable, which will enable Azerbaijan to supply renewable energy to Europe.

This project was launched in December 2022 when Azerbaijan, Georgia, Romania, and Hungary signed a strategic partnership agreement. The project envisions the construction of a 1,000 MW, 1,195 km-long cable capable of delivering up to 4 GW of renewable energy to Europe.

Through these initiatives, Azerbaijan is reinforcing its role as a reliable energy supplier while actively contributing to global climate goals. By integrating traditional and renewable energy sources, the country is building a resilient and diversified energy system that meets modern energy demands. The Southern Gas Corridor and green energy projects like Black Sea Energy highlight Azerbaijan’s strategic approach to ensuring Europe’s energy security and accelerating the transition to sustainable energy.

All of this underscores Azerbaijan’s importance as a key player on the international energy stage and a vital partner for countries seeking to diversify their energy supply and develop renewable energy sources. President Ilham Aliyev’s forward-looking energy policy has been instrumental in these achievements, ensuring the steady growth of the sector, attracting foreign investment, and solidifying Azerbaijan’s position as a leading energy hub in the region and beyond.

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