Azerbaijan increases natural gas exports amid declining prices

In the first five months of 2024, Azerbaijan significantly increased its natural gas exports, reaching a total of 9,912,607.09 thousand cubic meters, which represents a 5.9% rise compared to the same period in 2023.

This data, provided by Azerbaijan's State Customs Committee to Caliber.Az, underscores the country's ongoing efforts to expand its energy exports.

Despite the volume increase, the financial returns from these exports decreased substantially. The export value of natural gas dropped by 2.1 times, totalling $3,451,136.68 thousand. This decline in revenue is attributed to global market dynamics and pricing pressures affecting energy commodities during this period.

Natural gas exports accounted for 30.98% of Azerbaijan's total export volume from January to May 2024, a notable decrease from the 44.08% share observed during the same months in 2023. This shift reflects both changes in export volumes and broader diversification efforts within Azerbaijan's export portfolio.

Looking back at the full year of 2023, Azerbaijan's cumulative natural gas exports amounted to 26,623,473.52 thousand cubic meters, indicating a robust 40.4% increase compared to 2022. However, the total export value for gas exports in 2023 amounted to $13,678,344.14 thousand, marking an 8.7% decline compared to the previous year. These figures highlight the complexities and challenges faced by Azerbaijan's energy sector amidst fluctuating global market conditions.

Natural gas plays a strategic role in Azerbaijan's economy, contributing significantly to export revenues and energy security in the region. The country has actively pursued energy diplomacy, forging partnerships with neighbouring countries and European markets to diversify its export routes.