Baku, Azerbaijan, Feb.12
By Leman Zeynalova – Trend:
The cooperation between Azerbaijan and France’s TOTAL company in the sphere of renewable energy will not compete with the company’s gas projects, a source in the country’s oil and gas market told Trend.
The source was talking about the memorandum of understanding (MoU) earlier signed between Azerbaijan’s Energy Ministry and TOTAL Eren signed for the development of renewable energy sources.
“The document has identified some prospects. We technically assessed some of them and are ready to materialize projects. MoU is a first step before working on these specific projects. As there is yet no detailed legal framework in Azerbaijan, a pre-requisite to any project with international investors is to agree a framework with MoU,” noted the source.
TOTAL believes that there is a good potential for renewable energy in Azerbaijan especially in wind farms, according to the source.
“TOTAL’s strategy at group level is to develop renewable energy targeting 30 percent of its energy mix in 2040. Then it will have some resources to develop projects in Azerbaijan,” said the source.
The source noted that these projects would complement rather than compete with gas projects.
“TOTAL strategy fits with the «2 Degrees” scenario of the International Energy Agency which considers a growth of gas production and consumption and renewable energy. Developing in parallel gas and renewable makes sense in Azerbaijan and in other countries,” the source concluded.
TOTAL is a producer and supplier of oil, natural gas and low-carbon electricity. It is active in more than 130 countries.
TOTAL has been operating in Azerbaijan since 1996, primarily in exploration and production and the marketing of lubricants.
TOTAL has a 50 percent interest in the Absheron production sharing agreement in the Caspian Sea.
It also has a 5 percent interest in the Baku-Tbilisi-Ceyhan (BTC) oil pipeline.
TOTAL sells gas to SOCAR, Azerbaijan's national oil company and markets petrochemicals, automotive and industrial lubricants in Azerbaijan. It buys crude oil, especially from SOCAR.
---
Follow the author on Twitter: @Lyaman_Zeyn