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Europe bets on growing gas imports from Azerbaijan - EU officials highlight SGC's key role

Economy Materials 14 April 2025 13:55 (UTC +04:00)
Europe bets on growing gas imports from Azerbaijan - EU officials highlight SGC's key role
Laman Zeynalova
Laman Zeynalova
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BAKU, Azerbaijan, April 14. The 11th Ministerial Meeting of the Southern Gas Corridor (SGC) Advisory Council and the 3rd Ministerial Meeting of the Green Energy Advisory Council, held in Baku on April 4, once again highlighted Azerbaijan’s growing role as a reliable and strategically important partner in Europe’s energy security.

These high-level gatherings served as key platforms for discussing current and future cooperation in both traditional and renewable energy, with a particular focus on Azerbaijan’s contribution to diversifying energy sources and supply routes to Europe.

European officials attending the meetings expressed strong interest in increasing imports of Azerbaijani natural gas. The rising demand reflects Azerbaijan’s solid track record as a trustworthy supplier and its ability to respond swiftly to shifting market dynamics.

Azerbaijan, for its part, reiterated its readiness to expand gas exports, while emphasizing the importance of long-term contracts as the foundation for stable and mutually beneficial partnerships. Participants also reaffirmed the Southern Gas Corridor’s continued importance as a vital route for Europe’s energy diversification. At the same time, Azerbaijan’s role in the region’s green energy transition is steadily gaining momentum.

Speaking at the event, President Ilham Aliyev underlined the growing link between energy and national security, stating: "It is clear today, more than ever before, that energy security is an integral part of the national security of countries".

"I would also say that today we can also talk about industrial security, because in order to develop industries, we need energy resources, we need petrochemicals, we need fertilizers. And Azerbaijan is a producer and exporter of crude oil, natural gas, oil products, petrochemicals, and fertilizers.

And our energy company, SOCAR, is involved in upstream, downstream, and midstream activities in Azerbaijan and outside our boundaries. Azerbaijan, for many years, was and will be a reliable partner. And as high representatives of the European Commission noted, Azerbaijan is a reliable partner in the field of energy and a pan-European gas supplier. This is true. The geography of our gas supply is growing. Since our last meeting here in Baku, at the 10th Advisory Council, five more countries have become recipients of our natural gas," the head of state stated.

President Ilham Aliyev pointed out that the process of signing long-term contracts is also important.

"Because we all know that energy projects — oil and gas — need a lot of investments, and you recover investments over many years. By the way, until today, what we invested in the Southern Gas Corridor as a country has still not been recovered. We still have not reached the zero balance. Therefore, we must be sure that our gas will be needed in Europe, which is our main market, for many more years. If we don’t have this guarantee, investors will not invest, and the country will not invest. So there will be a big shortage of natural gas. Our reserves are known.

We expect new production from new fields this year — primarily from the Azeri-Chirag-Gunashli Deep Gas Structure. And also, we are, I think, in the final stage of reaching an agreement about the expansion of production from the Absheron Field, moving to Phase 2, which will add a minimum of 3 BCM to the existing 1.5," said President Ilham Aliyev.

As European Commissioner for Energy and Housing Dan Jørgensen said in an exclusive interview with Trend, Azerbaijan and the EU remain key energy partners for each other.

"In 2024, the EU imported around 11.7 bcm from Azerbaijan through the Southern Gas Corridor, 44% more than in 2021. Azerbaijani gas is reaching more and more customers across South Eastern Europe. One of our main priorities is to continue to implement the Strategic Energy Partnership with Azerbaijan. We are facilitating discussions on the gas supply outlook, market demand, and key gas infrastructure upgrades necessary, while, at the same time, advancing the clean energy transition," he said.

Bulgarian Energy Minister Zhecho Stankov, in turn, said that his country is actively working on developing infrastructure to receive additional volumes of gas from Azerbaijan.

He emphasized that Bulgaria has repeatedly expressed its interest in increasing the volumes of natural gas supplied from Azerbaijan.

"This is a leading factor for ensuring energy security not only in Bulgaria but in the whole region of South-Eastern Europe. In the context of the hostilities in Ukraine and the volatility of energy prices, opportunities for new quantities from a strategic partner like Azerbaijan become even more important. Therefore, we will continue to work to secure supplies that will guarantee us security and competitive gas prices," noted Stankov.

The minister added that Azerbaijan plays a key role as a source of natural gas supply diversification and in strengthening the energy security of both Bulgaria and the broader Southeast European region.

Moldovan Minister of Energy Dorin Junghietu, for his part, said that Moldova is working to strengthen its energy independence by expanding access to alternative supply routes, including through partnerships promoted under the Southern Gas Corridor.

Junghietu noted that Moldova was the first country to make commercial use of the Greece–Bulgaria Interconnector and among the first to benefit from the initial LNG delivery via the Alexandroupolis terminal in Greece.

"Natural gas will continue to play a crucial role in Moldova’s energy mix. It is necessary for local generation and balancing capacity for renewables. This is why we are particularly focused on the vertical corridor as a key project for Moldova’s energy future. The continued diversification of supply sources, including eventual imports from Azerbaijan, will be critical in securing our energy needs. Moldova appreciates Azerbaijan’s role as a reliable energy partner and looks forward to strengthening bilateral energy cooperation, as the relations between our countries are excellent," the minister said.

North Macedonia also emphasizes Azerbaijan’s increasing role in ensuring reliable gas supplies to Europe.

Sanja Bozinovska, the country’s Minister of Energy, Mining, and Minerals, stated that North Macedonia sees the Southern Gas Corridor as a strategically important project for diversifying natural gas supplies, enhancing energy security, and accelerating the transition to a more sustainable energy system.

"North Macedonia is prepared to strengthen cooperation with Azerbaijan and other partners in the Southern Gas Corridor and to take concrete steps to ensure energy stability both at the national and regional levels," she said.

The minister highlighted that North Macedonia is firmly committed to diversifying its gas supply sources, with Azerbaijan playing a key role as a reliable supplier.

Boglárka Illés, Hungary's Secretary of State for Foreign Affairs and Trade, also emphasized that Azerbaijan is a vital energy partner for her country.

"In 2023, Hungary gained access to 100 million cubic meters of Azerbaijani natural gas, with the potential for further increases in imports. From a corporate standpoint, we support and encourage further strengthening of cooperation between SOCAR and MVM," she said.

Meanwhile, Luca Schieppati, Managing Director of the Trans Adriatic Pipeline (TAP) consortium, shared that the necessary work for the first phase of TAP's expansion is progressing without delays.

Schieppati believes TAP can further enhance Europe’s energy security and contribute to decarbonization by gradually expanding its current capacity of 10 billion cubic meters per year.

He explained that the initial long-term capacity of TAP, which stands at 10 billion cubic meters annually, was allocated to shippers based on long-term transportation contracts signed in 2013 for 25 years, ensuring investment in the project.

"However, TAP can make an even greater contribution to Europe’s energy security and decarbonization goals by gradually increasing the pipeline's capacity. Additional TAP capacity is being offered to the market as part of regular market tests held every two years, provided there’s interest from the market. In the 2021 market test, completed in January 2024, binding requests were received that will allow the pipeline’s capacity to be increased by 1.2 billion cubic meters per year by early 2026. The necessary work for the first phase of the expansion is moving forward on schedule," Schieppati noted.

He added that the first phase of expansion could lay the foundation for further capacity increases, which could occur gradually through participation in future market tests.

In this way, Azerbaijan continues to strengthen its position in the European energy market as a reliable, predictable, and long-term partner. As global instability rises and the need for supply diversification grows, European countries are increasingly turning to Azerbaijan as a stable, sustainable, and mutually beneficial energy source.

Azerbaijan's commitment to energy solidarity is evident in its efforts to expand export routes, modernize infrastructure, and increase supply volumes. The country’s growing energy dialogue with Europe reflects both bilateral and multilateral cooperation, contributing to the development of a collective energy security framework.

Moreover, Azerbaijan is not limited to traditional energy sources. The transition to a "green" economy has become a national priority. Through active partnerships in renewable energy and large-scale solar and wind projects, Azerbaijan is showcasing its commitment to sustainable development and playing a key role in the global fight against climate change.

This balanced approach – combining traditional energy with investments in green transformation – makes Azerbaijan a crucial component in the European energy landscape, both now and in the future.

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