International Gas Union expects increase in Azerbaijani gas exports to EU

If Azerbaijan maintains the current level of gas exports to Europe throughout 2022, the supplies will increase by about 3 billion cubic meters (bcm) on an annual basis.

“The European Commission has presented plans to increase gas imports through pipelines from non-Russian sources by 10 bcm by late 2022,” Baku-based news service Trend reports, citing the Global Gas Report-2022, published by the International Gas Union (IGU), Snam and Rystad Energy last week.

“Most of these additional volumes are expected to come from Norway, Algeria, and Azerbaijan. To achieve this goal, there is enough free pipeline capacity, but the ability of these countries to increase [gas] production from their fields is questionable. The Norwegian Petroleum Authority (NPD) published a revised production outlook in February 2022, which vows an increase by 5.15 bcm in natural gas production in 2022. In April 2022, Eni and Sonatrach signed an agreement to increase gas supplies from Algeria to Italy to 9 bcm per year in 2023-2024,”

The report reads that Azerbaijan has been exporting its natural gas to Europe through the Southern Gas Corridor (SGC) since December 31, 2020.

“For the first time in history, Azerbaijan exported its natural gas to the European market through pipelines. With direct access to the European market, which is the world's largest importer of natural gas, Azerbaijan has diversified its export opportunities. Trans Adriatic Pipeline (TAP), which is the SGC’s European part, will annually supply 8 bcm of gas to Italy and 1 bcm to Greece and Bulgaria,” the global report said.