Azerbaijan’s pipeline gas deliveries set to increase by over 15%

Oil&Gas Materials 16 April 2021 10:57 (UTC +04:00)

BAKU, Azerbaijan, Apr.16

By Leman Zeynalova – Trend:

Azerbaijan’s pipeline gas deliveries are set to increase by over 15 percent, with 8 billion cubic meters destined for Turkey and over 5 billion cubic meters for other European markets in 2021, Trend reports with reference to the International Energy Agency (IEA).

IEA estimated that Azerbaijani gas deliveries increased by close to 40 percent year-on-year during October 2020-February 2021 as flows via the TANAP and TAP systems continued to ramp up.

“Europe’s gas import requirements are expected to increase by close to 10 percent in 2021, driven by demand recovery (3 percent y-o-y), lower domestic production and higher injection needs to replenish storage inventories, which stood 25 billion cubic meters lower than last year at the beginning of April 2021. Higher import requirements will benefit traditional pipeline suppliers, which are expected to recover close to their pre-crisis levels. LNG imports are projected to remain close to their 2019 record levels,” reads the IEA report.

European gas demand started to recover in June and rose by 1 percent year-on-year in Q3 2020. This was largely driven by gas-fired power generation, rising by 5 percent year-on-year despite the decline in electricity consumption and rising renewables output. In Q4, European gas demand increased by 2.5 percent year-on-year, despite the restrictive measures imposed amid a second wave of the pandemic. Gas consumption was supported by higher space heating demand in the residential sector and an increase of over 2 percent in gas-fired power generation. European domestic gas production fell by 8 percent year-on-year.

Azerbaijani gas supplies to European via the Southern Gas Corridor commenced in late 2020.

As the European section of the Southern Gas Corridor, TAP has the capacity to transport approximately 10 billion cubic meters of gas per annum (bcm/a) to several markets in Europe. The pipeline is also designed with the potential to expand its throughput capacity up to 20 bcm/a.

As a key part of the Southern Gas Corridor, TAP is strategically and economically important to Europe and essential in providing reliable access to a new source of natural gas. TAP plays a significant role in boosting Europe’s energy security, supply diversification, as well as decarbonisation objectives.


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