Caspian Oil & Gas Forum 2022: Blue flame gas - matter of priority Review by Caliber.Az

The first international oil and gas exhibition Xazarneftgaz has been held in the capital of Azerbaijan since 1994. Every year this forum has become the biggest event in the Caspian region. This year has been no exception. Interest in the 27th Caspian Oil & Gas Exhibition 2022 is still very high, especially today amid the global energy crisis and high prices for energy raw materials. As usual, the opening ceremony was attended by President of Azerbaijan Ilham Aliyev. The leaders of the USA, EU and UK paid particular attention to the exhibition and sent their addresses to the oil and gas forum participants.

Within the framework of the energy week, which started on June 1, the 27th Caspian Oil & Gas Exhibition 2022 and the 10th Anniversary Caspian International Energy and Renewable Energy Exhibition will be held at Baku Expo Center from 1-4 June, and the traditional Baku Energy Forum is also scheduled. Delegations from thirty countries have arrived in Baku to participate in these events, which clearly demonstrates the continued interest of global oil giants in the hydrocarbon resources and renewable energy sources of our country. The exhibiting countries were represented by 249 leading oil and gas, energy and service companies from the United States, Britain, the European Union, Japan, China, Saudi Arabia, UAE, Singapore, Indonesia, India, Turkiye, Israel, as well as from neighbouring countries - Russia, Belarus, Georgia, Kazakhstan and Uzbekistan. Among this year's innovations in the pavilions of the exhibition are pilot projects in the field of renewable energy sources, including the creation of the "green" energy zone, where potential of offshore wind energy, opportunities for production and export of "green" hydrogen and export will be displayed. The forum participants will demonstrate innovative technologies in oil production and energy transportation, oil and gas storage and services, as well as present current and future oil and gas projects in the region and, very probably, sign a number of memorandums of understanding.

By tradition, the opening of the oil and gas exhibition was attended by President Ilham Aliyev of Azerbaijan, members of the government and official delegations from a number of countries. In his welcome letter to the participants in Caspian Oil & Gas 2022, the head of state touched on the main aspects of the country's oil and gas strategy in the context of the global energy transformation. As Ilham Aliyev noted, the Baku Energy Week traditionally brings together the major players in the global energy market and international companies, and the decarbonization, an increased share of "green" energy, as well as affordable and safe energy supply and gas supply issues will be high on the agenda of the forum. "As one of the important players in ensuring global and regional energy security, Azerbaijan consistently implements sustainable projects, especially in the development of renewable energy, supports close integration with the energy systems of neighbouring countries to maintain peace, stability and security," President Ilham Aliyev stressed.

The Caspian Oil and Gas Exhibition, which is a key event of the energy industry in the Caspian region and a recognized international platform, annually brings together top-level executives to discuss major oil and gas projects in the region, as well as ensuring the energy security of Europe and some other parts of the world.

It should be noted that the initiative of organizing such a large-scale oil forum was put forward by the national leader of Azerbaijan Heydar Aliyev in 1994, and this most important exhibition event of the republic is the same age as the Contract of the Century, signed in September of the same year. Projects initiated by Heydar Aliyev over 27 years ago for development of "Azeri-Chirag-Guneshli" (ACG) oil block and other oil resources of the Caspian Sea turned into unique driving force, which promoted not only oil industry but a lot of other branches of industry and services. The specialized exhibition and forum - held in parallel with the formation of the new oil and gas industry of the country - chronologically reflected all the nuances and achievements in the energy sector of the country, becoming a living chronicle of the epoch-making events.

Over the past years, various memoranda and agreements were signed within the framework of the Caspian Oil & Gas Exhibition, and numerous projects were presented, and subsequently implemented during the development of the ACG block, the development of two phases of the Shah Deniz gas condensate field, the construction of the Baku-Tbilisi-Ceyhan oil pipeline, the South Caucasus gas pipeline, the formation of the Southern Gas Corridor (SGC), dozens of other already implemented energy projects. The oil forum also discussed promising initiatives within the framework of the second "Contract of the Century", which was signed in September 2017 in Baku and covers the development of the ACG block until 2050.

The importance of the forum and oil and gas exhibition held annually in Baku has by no means diminished over the years; moreover, today the interest in these events has increased noticeably in view of the global energy crisis, which is now in its second year and has been exacerbated by the war in Ukraine. The Ukrainian conflict and the sanctions' confrontation resulted in acute shortages of gas and electricity and higher prices of oil and oil products in the Old World. And, judging by all appearances, the embargo on Russian oil and petroleum products recently agreed upon by the EU countries as part of the sixth package of sanctions will further increase the shortage of energy resources. Against this negative background, the EU states view Azerbaijan as a major source of diversification of gas supplies and generally see our country as a reliable and stable partner that has provided energy security in Europe for many years.

This message run through most of the presentations and discussions at the oil and gas exhibition. "Demand for Azerbaijani gas in Europe is growing rapidly, and Azerbaijan is already conducting negotiations. However, potential gas buyers should understand that it is impossible to increase significantly production and exports in one year. Contracts are needed, so we need to accelerate negotiations, and we also need to increase production and expand the existing export infrastructure in Azerbaijan", President of Azerbaijan Ilham Aliyev said at the opening of the oil and gas exhibition. The head of state reminded that last year Azerbaijan exported 22 billion cubic metres (bcm) of natural gas on the whole and the forecast for this year is 24 bcm with gradual increase of volumes in the following period.

Ilham Aliyev stressed that now the shareholders of Trans Adriatic Pipeline (TAP) with capacity of 10 bcm are discussing the possibility of increasing its capacity in view of high demand for Azerbaijani gas. At the same time, the prospects of expanding the capacity of Trans-Anatolian Gas Pipeline (TANAP), the current capacity of which is about 16 bcm per year, are being studied.

"We are ready for this: the Ministry of Energy and SOCAR have received all the necessary instructions to conduct negotiations, and the Baku Energy Week is a great opportunity for this. But it will take some time, require significant financial resources, close cooperation, coordination and active dialogue of all countries participating in the project, there should be investments in the infrastructure in Europe, the availability of contracts," the head of state noted. The President also emphasized that along with cooperation in the field of Azerbaijani gas export, it is necessary to pay attention to the considerable transit potential of Azerbaijan as well and mentioned the plans to increase energy exports to Europe.

Western partners have always welcomed Azerbaijan's consistent position on energy cooperation and reliable partner status. The support and welcome speeches made by Western leaders to Caspian Oil & Gas exhibition participants have also become traditional.

"Over 30 years of diplomatic relations, Azerbaijan and the United States have become strong partners in combating transnational threats, enhancing energy security and promoting bilateral trade and investment. Azerbaijan plays a crucial role in helping stabilize energy security in Europe through the Southern Gas Corridor. Its role in realizing the vast potential of trans-Caspian cooperation to help stabilize markets in the region and around the world is also significant," says a letter from US President Joseph Biden, read out on June 1 by Laura Lohman, Deputy Assistant Secretary of State for Energy Diplomacy, who attended the opening ceremony of Baku Energy Week.

Welcoming the participants of the International Oil and Gas Exhibition held in Baku, the US President emphasized that US is still Azerbaijan's loyal partner. "We are making important investments and changes to fulfil our long-term commitment to clean energy, and Azerbaijan is playing a central role in regional efforts to achieve this goal," the president's message says.

The important role Azerbaijan plays today as a reliable and stable natural gas supplier was highlighted by British Minister of State for Business, Energy and Clean Growth Gregory William Hands, who took part in the opening ceremony of the Baku Energy Week. "The Southern Gas Corridor originates in Azerbaijan, and the planned expansion of the Southern Gas Corridor will help diversify gas supplies to Europe and will also play an important role in the transition to clean energy. We welcome the commitment of our partners, including Azerbaijan. The British company BP, which is very active in Azerbaijan, has an ambitious plan to achieve zero emissions by 2025," the state minister said.

According to Director General for Energy of the European Commission Cristina Lobillo Borrero, who also took part in the Baku Oil & Gas Forum, Azerbaijan plays a key role in efforts to diversify gas supplies to the EU, supporting measures to stabilize energy prices and ensure the security of supply. According to her, the EU highly appreciates this partnership and expects to fully strengthen cooperation with Azerbaijan in the field of renewable energy as well.