BAKU, Azerbaijan, April 8. On April 4, Baku hosted the 11th Ministerial Meeting of the Southern Gas Corridor Advisory Council and the 3rd Ministerial Meeting of the Green Energy Advisory Council.
One of the main topics on the agenda was the expansion of the Southern Gas Corridor.
Speaking at the meeting, President of Azerbaijan Ilham Aliyev noted that Azerbaijan currently supplies natural gas to 12 countries — 10 of them in Europe, including 8 EU member states.
"The geography of our gas supply in Europe will definitely grow, because today we are already involved in the creation of gas distribution networks in some European countries. Some of them do not have one, some of them need to expand it, and Azerbaijan, as an investor, is planning to do that. So, the geography of our gas supplies will definitely grow through different ways, including interconnectors
Of course, we need to think about joint efforts in the expansion of the existing gas pipeline system. The Southern Gas Corridor is a tremendous success story for all of us. The 3,500-kilometer integrated pipeline system today is the main artery for energy security for many countries. And now it is working at full capacity. Whether it’s the South Caucasus Pipeline, TANAP, or TAP — three integral parts of the Southern Gas Corridor — all are fully packed. So we need to expand. And for that, we will need, of course, financing. And we come to a very important point, which we have raised on several occasions — that international financial institutions, those who decided to stop financing fossil fuel projects, will probably reconsider their policy, especially taking into account the huge geopolitical changes that we all witness. Because without that, any further investments in transportation infrastructure and even in upstream will be very problematic," President Ilham Aliyev said.
Undoubtedly, the European countries that currently receive Azerbaijani gas and are looking to increase their supplies, as well as those seeking access to Azerbaijani gas, recognize that expanding the existing infrastructure is crucial to achieving this.
In an exclusive interview with Trend, EU Energy and Housing Commissioner Dan Jørgensen emphasized that the EU is collaborating with partner countries to boost gas supplies through the Southern Gas Corridor. "This is even more important as we aim to phase out our dependency on Russian fuels and diversify our energy supplies," he said.
He noted that the EU aims to continue with Azerbaijan and other partner countries the development of the bilateral trade of natural gas via the Southern Gas Corridor.
"This is, of course, also subject to commercial viability and market demand. It is for market participants to assess indeed the opportunities and agree on commercial terms for higher volumes of gas, that will underpin investment in increased pipeline capacity. We are making solid progress with the implementation of a number of projects to extend the reach of Azerbaijani gas within the EU, such as the Adriatic backbone and the strengthening of the Bulgarian and Romanian energy systems," said the commissioner.
Prime Minister of Moldova Dorin Recean also stated that his country strongly supports the expansion of the Southern Gas Corridor and its role in enhancing Europe's energy security. "Moldova seeks to consolidate its energy independence by expanding its connections to alternative supply routes, including through partnerships facilitated by SGC," he said.
Minister of Energy of Romania Sebastian-Ioan Burduja emphasized that concrete steps are needed to expand the Southern Gas Corridor to Southeastern Europe and the Balkans.
"We have all the arguments in favor of the Southern Gas Corridor expansion process. There is a clear need for substantial additional volumes and new suppliers, especially in the countries of Central and South-Eastern Europe. Given the undeniable success of this gas transport infrastructure and its particular importance in strengthening Europe's energy security, concrete steps are needed more than ever in the implementation of the Southern Gas Corridor expansion plans that also take into account the states of South-Eastern Europe and the Balkans, in order to secure the connection of these regions to the Southern Gas Corridor, especially since there is a possibility of capitalizing on the gas transport infrastructure in these countries.
For this to become a reality, there is a need for increased cooperation between our countries, immediate actions and concrete steps in the plans to expand the Southern Gas Corridor. Correlating this strategic desideratum regarding the Southern Gas Corridor with the second project of particular importance for energy security of the submarine cable that we wish to implement together, on the one hand, and the multitude of potentially disruptive events registered in the global and European gas market in the last year, it would be appropriate to consider organizing biannual working meetings in this prestigious format, for a consolidated and more active cooperation and a new impetus for coordinated actions in the development of the dialogue between our countries," said Burduja.
Boglárka Illés, State Secretary of the Ministry of Foreign Affairs and Trade of Hungary, also highlighted that Hungary has always supported the construction and expansion of the Southern Gas Corridor, a key project not just for Hungary or the Central and Eastern Europe region, but for all of Europe.
"For us what it is of key importance that the capacity of the South-East European gas network gets increased. There are bottlenecks that should be eliminated, the capacities of some pipelines and interconnectors should be increased. The bigger capacity delivery routes have, the bigger hope we have to get access to new sources of energy," noted the state secretary.
Amid growing demand for sustainable energy sources and the need to strengthen energy security, European countries are showing clear interest in increasing imports of Azerbaijani natural gas. Countries already receiving gas from Azerbaijan are looking to boost supplies, while those not yet connected to the Southern Gas Corridor are eager to gain access to this reliable source.
Achieving these goals requires expanding the existing infrastructure of the Southern Gas Corridor, a project that has already proven to be successful and strategically important. However, the main challenge is attracting investment. Many international financial institutions are moving away from funding fossil fuel projects and focusing solely on green energy.
That said, the current geopolitical situation and market needs call for a pragmatic approach. A full energy transition is impossible without intermediate solutions. It’s crucial that international financial institutions reconsider their stance and continue funding natural gas transportation projects, especially the expansion of the Southern Gas Corridor.
As the success of the Southern Gas Corridor has shown, close cooperation between Azerbaijan and European countries, along with foresight and strategic planning, can lead to tangible results. Today, the same determination and vision are needed to ensure Europe’s long-term energy security.