European think-tank: Azerbaijan can play pivotal role in EU energy security for years to come

    ECONOMICS  15 November 2022 - 09:46

    The measures proposed by the European Commission to deal with the energy crisis go in the right direction, Giovanni Sgaravatti, a research analyst at Bruegel, a European think tank specializing in economics, has said.

    According to the researcher, increased solidarity through better coordination of gas purchases, through bilateral gas exchange agreements between EU countries in case of emergency, and renewed attention to reducing demand and improving energy efficiency in buildings are all positive developments, Trend reports.

    "The creation of a temporary dynamic price corridor has not been detailed yet, but my understanding is that the idea behind is to establish a maximum price at which natural gas transactions can take place in the TTF [Title Transfer Facility] spot markets. By the term 'dynamic' I would expect it to vary along the price of other benchmarks (for example the Asian one). By "corridor" I guess it means that other gas trading hubs in the EU would be linked to the 'corrected' TTF spot price (set in the Netherlands). I believe that once the design of the dynamic price corridor is agreed upon, trading venues will have the task of implementing it," he said.

    As Sgaravatti noted, these new measures are not expected to affect the supplies from Azerbaijan in any meaningful way. At the same time, Azerbaijan can play a significant role in the energy security of the EU for years to come, he added.

    Quoting the Commission, the analyst said it is good that "the measure should allow for over-the-counter gas trades, not affect EU’s security of gas supply and intra-EU flows, not lead to an increase in gas consumption and not affect the stability and orderly functioning of energy derivative markets".

    So, I expect that the tool will be designed so as not to aggravate the crisis for any EU country. However, those most vocal in opposing it are the countries whose (i) security of supply is not yet perfectly clear without Russian natural gas and (ii) have enough fiscal space to be able to use the market price signal to obtain the natural gas needed to meet their domestic demand. This is why Germany does not seem to like the system too much, while Italy has been a strong advocate," he explained.


    Subscribe to our Telegram channel

Read also

Azerbaijan may supply gas to Hungary by late 2023

30 March 2023 - 19:45

Azerbaijan exports 22 billion cubic meters of gas to Europe

30 March 2023 - 18:14

Azerbaijan, World Bank mull 2023-2028 cooperation plan

30 March 2023 - 17:24

Hell Energy to produce aluminium cans for drinks in Azerbaijan

30 March 2023 - 16:25

Azerbaijan, major Hungarian company sign investment deal

30 March 2023 - 12:31

Azerbaijan bans import of cars with over 10 years of use

29 March 2023 - 20:40
Latest news

    Russian anti-war protest dad detained in Minsk

    30 March 2023 - 22:30

    Xi Jinping says he preparing China for war

    Analysis by Foreign Affairs

    30 March 2023 - 22:00

    Population of European Union to decrease and age by 2100

    30 March 2023 - 21:31

    World's first 3D-printed hotel set to open in Texas

    30 March 2023 - 21:14

    Azerbaijani foreign minister visits Yasser Arafat Museum


    30 March 2023 - 21:07

    Google says Microsoft cloud practices are anti-competitive

    30 March 2023 - 21:00

    Germany faces soldier shortage

    30 March 2023 - 20:48

    Türkiye's electoral commission allows four candidates to run for president

    30 March 2023 - 20:37

    Azerbaijani Defence Ministry responds to Iranian land forces commander

    30 March 2023 - 20:28

    Minister: India to start coal export by 2025-26

    30 March 2023 - 20:21

    Azerbaijani top diplomat meets Palestinian prime minister

    30 March 2023 - 20:13

    Czech volunteers send 15 Viktor air defence systems to Ukraine

    30 March 2023 - 20:06

    US allocateds $140 million to Croatia for arms purchases

    30 March 2023 - 19:59

    Diego Simeone tops 2023 list of highest paid managers in world soccer

    30 March 2023 - 19:52

    Azerbaijan may supply gas to Hungary by late 2023

    30 March 2023 - 19:45

    Homes evacuated after train carrying ethanol derails, catches fire in Minnesota


    30 March 2023 - 19:38

    Georgia suspends imports of gasoline, diesel fuel from Azerbaijan

    30 March 2023 - 19:31

    Moscow, Yerevan discuss Armenia's ratification of Rome Statute

    30 March 2023 - 19:24

    Marine commandant warns US lacking in key capability for war with China

    30 March 2023 - 19:17

    Azerbaijani students silence Armenia's ambassador to Britain

    30 March 2023 - 19:10

    EU to spend another 1.2 billion euros on defence

    30 March 2023 - 19:03

    NATO, US forces join Romania-led Black Sea military drills

    30 March 2023 - 18:56

    Russian spokeswoman: Brussels stokes controversy between Baku, Yerevan

    30 March 2023 - 18:49

    Ukraine calls Russia's upcoming UN presidency "bad joke"

    30 March 2023 - 18:42

    Greek PM vows to complete fence on Turkish border

    30 March 2023 - 18:35

    Germany to change immigration laws to attract skilled labor

    30 March 2023 - 18:28

    Armenia takes part in talks on preparation of CSTO drills

    30 March 2023 - 18:21

    Azerbaijan exports 22 billion cubic meters of gas to Europe

    30 March 2023 - 18:14

    Some 45 vehicles of Russian peacekeepers pass freely along Khankendi-Lachin road

    30 March 2023 - 18:07

    MARLIN Unmanned Surface Vessel successfully fires RF guided missile

    30 March 2023 - 17:59

    Greek defence minister to visit Türkiye

    30 March 2023 - 17:52

    Shusha city state reserve department gets new powers

    30 March 2023 - 17:45

    Israeli airline resumes flight to Türkiye after 16-year hiatus

    30 March 2023 - 17:38

    No, TikTok isn’t like other social media: Ban it today

    30 March 2023 - 17:31

    Azerbaijan, World Bank mull 2023-2028 cooperation plan

    30 March 2023 - 17:24

    Bolsonaro returns to Brazil after three months to revive his political career

    30 March 2023 - 17:17

    FIFA deprives Indonesia of U-20 Men’s World Cup host status

    ... due to protest to Israel's participation

    30 March 2023 - 17:11

    Pope's health improving, he "slept well", says Vatican

    30 March 2023 - 17:04

    King Charles blames Russia for "returning trouble to Europe"

    30 March 2023 - 16:57

    Turkish, UAE leaders discuss bilateral, regional agenda

    30 March 2023 - 16:50

    Ukraine reports Russian FSB to conduct "filtration" in Crimea

    30 March 2023 - 16:43

    Armenia, Greece approve military cooperation plan for 2023

    30 March 2023 - 16:37

    Hell Energy to produce aluminium cans for drinks in Azerbaijan

    30 March 2023 - 16:25

    Von der Leyen outlines EU's position on China

    30 March 2023 - 16:18

    Four people executed in N.Korea for sharing conent from S.Korean media

    30 March 2023 - 16:11

All news