BAKU, Azerbaijan, June 22. Azerbaijan’s plans to increase gas exports will provide further help for reducing the EU’s dependence on Russia’s energy resources, Ben McWilliams, Research Analyst at Bruegel, a European thinktank specializing in economics, told Trend.
“For natural gas, currently, Azerbaijan provides just under 5 percent of the EU’s total imports, and in the short-run cannot substantially displace Russian gas (last year 40 percent of the EU’s imports). However, for the countries receiving Azerbaijan gas directly (notably Italy) it is a great help for reducing Russian dependence,” McWilliams said.
According to the expert, to substitute for Russia’s energy supplies, the EU can look to pipeline imports from Norway, North Africa, Azerbaijan as well as via interconnectors with the UK.
“The largest share of replacement is via the global LNG market, here the US supplies comprise a substantial component. However, the EU’s dependence on pipeline infrastructure delivering Russian gas means that in the case of a complete shut-off, it will not be possible to immediately replace all molecules and demand will have to be cut,” he explained.
As for oil import, the EU is typically looking to OPEC partners as well as the US to provide increased oil supplies to global markets. Recently, OPEC has announced a slight increase in production quotas, the expert noted.
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