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Weekly review of Azerbaijan's oil and gas sector

Oil&Gas Materials 27 February 2021 13:46
Weekly review of Azerbaijan's oil and gas sector

BAKU, Azerbaijan, Feb. 27

By Fidan Babayeva - Trend:

Azerbaijan exported over 11.7 million tons of crude oil to Italy in 2020, which is 2.7 percent more compared to 2019, Trend reports citing the statistical report of the State Customs Committee (SCC).

According to the SCC, the value of crude oil exports to Italy for the reporting year amounted to $719.1 million. The share of Italy in exports from Azerbaijan amounted to 40.6 percent.

Last year, Azerbaijan exported nearly 2.06 million tons of crude oil to China, which is 45 percent more compared to the preceding year. In monetary terms, the volume of crude oil exports to China amounted to $386.2 million.

In 2020, Azerbaijan exported more than 1.64 million tons of crude oil to Croatia, which is 1.8 times more than in 2019. In monetary terms, the volume of crude oil exports to Croatia amounted to $470.7 million, having risen 8 percent year on year.

This week, it became known that the Turkish company BOTAS International Limited (BIL) had shipped about 3.6 billion barrels of oil from the oil terminal in Ceyhan until February 22.

According to the BIL, 4,700 tankers with oil from the Azeri-Chirag-Guneshli (ACG) block of fields in the Azerbaijani sector of the Caspian Sea have been loaded from the terminal.

Since the beginning of 2021, 41 tankers with ACG oil (30.1 million barrels of oil) have been shipped from the Ceyhan oil terminal.

According to the State Customs Committee, in January 2021, the export of natural gas from Azerbaijan to Turkey surpassed 1 billion cubic meters.

In January 2021, the total export of Azerbaijani gas to Turkey amounted to $87.6 million. Turkey's share in the export of Azerbaijani gas in January 2021 amounted to 90 percent.

By the end of the week it became known that SOCAR has been in the TOP-10 importers of liquefied petroleum gas (LPG) in Ukraine since the beginning of 2021. On February 21, 2021, SOCAR Ukraine supplied 2,400 tons of LPG to Ukraine, while in Jan. 2021 - 500 tons.

As noted this week in the report of the Gas Exporting Countries Forum (GECF), Azerbaijan, which by 2050 will produce about 40 billion cubic meters of gas per year, will become the third largest gas producer in Eurasia.

"Gas production in the region is expected to increase by almost 40 percent and reach just under 1.3 trillion cubic meters by 2050. Russia and Turkmenistan will provide more than 78 percent and 17 percent of these expanded volumes, respectively. These two significant producers remain in the rating. Azerbaijan, which will produce about 40 billion cubic meters per year by 2050, will become the third largest gas producer in the region. Progress in the development of the giant Shah Deniz field as well as the Absheron field is the basis for expanding gas production in Azerbaijan," the report reads.

Regional Manager of the World Bank (WB) for South Caucasus, Sarah Michael, said this week that the bank, together with the International Finance Corporation (IFC), a member of the World Bank Group, is launching two technical assistance projects in cooperation with the Azerbaijani Energy Ministry.

She explained that this cooperation is focused on energy sector reforms and market transition, as well as the offshore wind energy development program.

“The WB will provide the government with a balanced and strategic analysis of the role that offshore wind energy can play in meeting future electricity demand and achieving sustainable development goals in Azerbaijan. This study should present various options for the development of the industry and recommended options for future action, based on industry best practices. They can help in the formation of policy, planning and development of a portfolio of projects for financing,” said the WB regional manager.

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Follow the author on Twitter: @Fidan_Babaeva

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