Azerbaijan's SOCAR unveils $480 million AI-powered smart gas grid project

Azerbaijan’s State Oil Company (SOCAR) is set to invest $480 million in the development of a state-of-the-art "smart" gas network management system, aimed at enhancing gas distribution and reducing emissions.

The announcement was made by Elchin Agakishiyev, Advisor to the President of SOCAR, at the IADC Drilling Caspian 2025 conference in Baku, per Caliber.Az reports, citing local media.

The system will be implemented within the service area of Azəriqaz PO, the company’s gas distribution division, and is expected to leverage artificial intelligence (AI) to optimize gas consumption, minimize losses, and enhance overall system reliability.

This significant project was formalized at COP29 with an agreement between SOCAR and IntelliGrid, a joint venture between Esyasoft Holding and Presight, based in the UAE. The AI-powered smart gas grid management system will include advanced data analysis, predictive maintenance, and real-time monitoring capabilities, ensuring better control over gas distribution and reducing potential system inefficiencies.

Agakishiyev also noted that the smart gas grid project aligns with SOCAR’s broader environmental goals, which include reducing emissions across its operations. As part of its commitment to sustainability, SOCAR has pledged to completely stop routine gas flaring at its facilities by 2030. The company also aims to cut upstream emissions intensity by 30% by 2030 (compared to 2022 levels), reduce corporate emissions intensity by 30%, and achieve a 20% reduction in absolute emissions by 2035. Additionally, SOCAR plans to reduce methane emissions to under 0.2% in its upstream assets by 2035 and become carbon-neutral by 2050.

SOCAR’s role in Azerbaijan’s energy sector remains vital, with the company actively involved in all stages of oil and gas production, as well as distribution, both domestically and internationally. The Shah Deniz gas field, one of the largest in the world, is a key asset for SOCAR, supplying natural gas to Europe via the Southern Gas Corridor. Furthermore, the Baku-Tbilisi-Ceyhan (BTC) pipeline plays a significant role in transporting Caspian oil to the Mediterranean, strengthening Europe’s energy security.

The new smart gas grid project is part of SOCAR’s ongoing efforts to modernize its infrastructure and reduce environmental impacts, ensuring a more efficient and sustainable energy future for Azerbaijan.

By Tamilla Hasanova