Azerbaijan: Southern Gas Corridor opens up new opportunities for Caspian region

ECONOMICS  27 June 2022 - 15:58

The Southern Gas Corridor (SGC) project opens up new opportunities for the Caspian region.

The senior consultant of the Centre for Analysis of International Relations of Azerbaijan (AIR Center), Shahmar Hajiyev, made the remarks at the conference on "Energy Security in Europe: Current Situation, Challenges and Future Opportunities" organised by AIR Centre and the International Centre for Black Sea Studies (ICBSS), Trend reports.

"All segments of the Southern Gas Corridor are significant energy infrastructure projects that open up new opportunities not only for Azerbaijan but also for the Caspian region to export natural gas to European energy markets," Hajiyev said.

According to him, the Southern Gas Corridor has demonstrated cooperation and integration between all the countries involved in this project, as well as established strong relations with European partners.

"Azerbaijan's export and transit potential will increase, as additional gas supplies from Turkmenistan can fuel the Southern Gas Corridor. Thus, the TAP segment will double its export capacity to 20 billion cubic meters," Hajiyev said.

The senior consultant of AIR Centre noted that in order to increase capacity, Azerbaijan needs additional gas, which the country plans to receive from the Absheron field and others, as well as within the framework of the gas swap agreement with Turkmenistan.

The Southern Gas Corridor will need additional investments and time to reach maximum capacity, and, first of all, Azerbaijan must increase production to ensure additional supplies. It is important for Azerbaijan to get guarantees for the purchase of gas and offers from EU countries to invest in gas exploration and production," he said.

Hajiyev stressed that it is also important for Azerbaijan to develop renewable energy sources and energy efficiency in order to reduce domestic gas consumption, which in 2021 amounted to about 13 billion cubic meters.

Caliber.Az