BAKU, Azerbaijan, Aug.4. Southern Gas Corridor’s expansion will be a significant contribution to EU's diversification goal, Charles Ellinas, CEO of Cyprus-based energy consultancy e-CNHC told Trend.
He pointed out that the memorandum of understand on energy signed recently between Azerbaijan and the European Commission was quite timely.
“The visit to Baku of Ursula von der Leyen and Energy Commissioner Kadri Simson underlines the importance the EU attaches to this. It will help increase gas deliveries to Europe from 8bcm last year to 12bcm this year. The signed MOU allows the expansion of these quantities, with a target to double them by 2027. This will be a significant contribution to EU's quest to diversify away from Russian gas supplies,” said Ellinas.
He noted that Azerbaijan has been a reliable energy partner to the EU so far and expressed confidence that it will continue being so for years to come.
On July 18, 2022, a “Memorandum of Understanding on Strategic Partnership in the field of energy between the European Union represented by the European Commission and the Republic of Azerbaijan" was signed between Azerbaijan and the European Union.
The Sides agreed to support bilateral trade of natural gas, including through exports to the European Union, via the Southern Gas Corridor, of at least 20 billion cubic meters of gas annually by 2027, in accordance with commercial viability and market demand.
According to the document, any further exports of natural gas to the European Union beyond those that are being delivered to date will require significant investments in the expansion of the Southern Gas Corridor pipeline network and the upstream project development.
Moreover, the EU and Azerbaijan will encourage financing of the expansion of the Southern Gas Corridor pipeline network taking into consideration the EU’s climate policies and its REPowerEU strategy, including through cooperation with international financial institutions.
---
Follow the author on Twitter: @Lyaman_Zeyn