Major events in Caspian countries' oil and gas industry for last week (Sept. 4-8)

Analysis Materials 12 September 2017 10:32 (UTC +04:00)

SOFAZ executive director meets delegation headed by EBRD president

Shahmar Movsumov, executive director of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) met with the delegation led by Suma Chakrabarti, president of the European Bank for Reconstruction and Development (EBRD), on September 8, 2017, SOFAZ said in a message.

The Southern Gas Corridor project, Equity Participation Fund (EPF) managed by the EBRD, and activities on transparency and accountability in the extractive industry of Azerbaijan were discussed during the meeting.

EU-Azerbaijan energy co-op goes beyond Southern Gas Corridor - Sefcovic

EU-Azerbaijan energy cooperation goes beyond the Southern Gas Corridor, European Commission Vice-President for Energy Union Maros Sefcovic told Trend.

“Azerbaijan is an important energy partner for the EU, currently supplying around 5 percent of the EU's oil demand and playing a pivotal role in bringing Caspian gas resources to the EU market through the Southern Gas Corridor,” he said. “EU-Azerbaijan energy cooperation does, however, go beyond the Southern Gas Corridor, for instance, in the area of renewables and energy efficiency.”

Further, Sefcovic pointed out that the Energy Union has its intra-EU dimension, but at the same time, the Energy Union does not stop at the EU borders.

“The EU's energy security is closely linked with its neighbors and therefore, cooperation is vital,” he said. “In practice, for instance, we are expanding the EU energy market – with its rules – into our neighborhood via the Energy Community but also the Southern Mediterranean, ensuring effective implementation of the EU's energy, environment and competition acquis, energy market reforms and incentivizing investments in the energy sector. The goal is closer integration of the EU and Energy Community energy markets.”

The Southern Gas Corridor is one of the priority energy projects for the EU. It envisages the transportation of gas from the Caspian region to the European countries through Georgia and Turkey.

At the initial stage, the gas to be produced as part of the Stage 2 of development of Azerbaijan's Shah Deniz field is considered as the main source for the Southern Gas Corridor projects. Other sources can also connect to this project at a later stage.

As part of the Stage 2 of the Shah Deniz development, the gas will be exported to Turkey and European markets by expanding the South Caucasus Pipeline and the construction of Trans Anatolian Natural Gas Pipeline and Trans Adriatic Pipeline.