Azerbaijan is an important supplier of crude oil and natural gas in the Caspian Sea region, particularly to European markets, the US Energy Information Administration said in its report.
The EIA’s report notes that Azerbaijan’s exports of natural gas are poised to become a more significant part of the country’s economy.
Azerbaijan produced about 600 billion cubic feet (Bcf) of dry natural gas in 2017 and exported about 210 Bcf, according to EIA’s International Energy Statistics.
“Azerbaijan is planning to expand its natural gas exports to Europe. European Union leaders consider connecting Azerbaijan’s Shah Deniz natural gas field to Southern Europe to be a step toward the strategic goal of diversifying Europe’s natural gas supply. Southern and Eastern Europe, in particular, have limited supply options for natural gas because of geographic constraints and infrastructure limitations,” the report says.
The proposed Azerbaijani volumes could help mitigate potential natural gas supply disruptions by providing another option to satisfy regional natural gas demand, according to EIA.
Azerbaijan is currently implementing the Southern Gas Corridor project, which is one of the priority projects for the EU. It envisages the transportation of 10 billion cubic meters of Azerbaijani gas from the Caspian region through Georgia and Turkey to Europe.
The launching ceremony of the first stage of the Southern Gas Corridor was held in Baku on May 29, 2018, while opening ceremony of TANAP was held on June 12, 2018 in the Turkish city of Eskisehir.
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