Weekly review of Azerbaijan's energy sector

Economy Materials 9 January 2023 17:23 (UTC +04:00)
Weekly review of Azerbaijan's energy sector
Maryana Ahmadova
Maryana Ahmadova
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BAKU, Azerbaijan, January 9. The past week was remembered for important statements regarding the expansion of Azerbaijan's cooperation in the oil and gas sector, Trend reports.

Turkish Energy Minister Fatih Donmez said that Azerbaijan, Russia, and Iran may participate in the gas hub project in Türkiye. Meanwhile, he noted that the establishment of a gas hub in Türkiye will take roughly a year.

"Two pipelines of the Turkish Stream gas pipeline were put into operation. The first line is intended for gas supplies to Turkish consumers and the second - for gas supply to Europe through Bulgaria. Azerbaijan, Russia and Iran can be participants here," he noted.

Donmez also said that the infrastructure for the creation of a trading platform for the European market is ready, while the roadmap is currently being finalized.

Moreover, according to Bulgarian President Rumen Radev project for additional supplies of Azerbaijani natural gas to Europe will be presented on February 3 in Baku at a meeting of energy ministers of the countries participating in the Southern Gas Corridor project.

"This is a project that will allow for the immediate start of pumping additional volumes of natural gas from Azerbaijan to Europe with minimal funds. At the initiative of Bulgaria, Romania, Hungary, Slovakia and Austria joined this project," Radev said.

However, Azerbaijan's cooperation is not limited to the usual hydrocarbons.

Kamola Makhmudova, head of the European Bank for Reconstruction and Development (EBRD) in Azerbaijan, said that the EBRD is preparing a market study report on Low Carbon Hydrogen Economy in Azerbaijan. It is expected that the report will be finalized in the upcoming months

Furthermore, the Practice Manager for the Macroeconomics, Trade, and Investment in Europe and Central Asia Region of the World Bank Group, Antonio Nucifora said that projects in Azerbaijan's liberated territories can be a model for economic growth in the rest of the country.

“Liberated territories will require investments in the short term in demining, creating infrastructure and forming human capital needed to create an environment where economic growth can take place. The challenges, meaning the new growth model, the need to transition towards renewables and a green economy apply everywhere, including the liberated territories,” he said.

Nucifora said what is different there, is that it is a restart in a way and there is a chance to use it as a pilot in terms of creating an economic basis, which is already able to anticipate climate change, is focused on a green economy, energy-efficient buildings and all the infrastructure which follows these.