BAKU, Azerbaijan, July 25. Azerbaijan’s gas exports in 2022 is expected to account for about 20 percent of total hydrocarbon exports, Trend reports, citing S&P Global Ratings.
“In contrast to oil, the outlook is stronger for Azerbaijan's gas sector. Production at the new Shah Deniz II (SDII) gas field commenced in 2018 and the two related pipelines, the Trans-Anatolian Natural Gas Pipeline (TANAP) and Trans Adriatic Pipeline (TAP), carrying gas to Turkey and Europe respectively, became operational in 2019-2020,” the report said.
As S&P noted, Azerbaijan’s gas production, having increased by 80 percent from 2017 through 2021, is set to rise by another 13 percent, according to official plans.
“Nevertheless, even considering this recent production ramp-up, we expect gas exports will play a relatively modest role in Azerbaijan's economy, accounting for about 20 percent of hydrocarbon exports compared with close to 80 percent for oil over the medium term,” the agency added.
In addition, Azerbaijan’s oil production in 2022 is expected at 0.72 million barrels per day, S&P said.
Meanwhile, S&P Global has affirmed its 'BB+/B' long- and short-term foreign and local currency sovereign credit ratings on Azerbaijan with a stable outlook.
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