Azerbaijan expects its gas exports to Europe to exceed 12 Bcm in 2023, an increase from 11.4 Bcm last year, according to the country’s deputy energy minister Samir Valiyev.
Valiyev, quoted in a ministry statement published Nov. 10, also said a large volume of additional gas would be available in Azerbaijan later this decade with the development of new fields in the Caspian Sea.
“In 2022 Azerbaijan exported 11.4 Bcm of gas to Europe and in 2023 this volume is expected to exceed 12 Bcm,” Valiyev was quoted as saying at a gas industry event.
Azerbaijan exports gas to Europe from the Shah Deniz field via the Southern Gas Corridor and has plans to raise exports to 20 Bcm/year by 2027 under a Memorandum of Understanding agreed with the European Commission in July 2022.
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The MOU laid the groundwork for expanding the Southern Gas Corridor and increasing gas supply, the ministry said Nov. 10.
It said talks on the purchase of gas to be delivered through the expanded infrastructure have continued since then.
Valiyev also pointed to future gas supply sources from Azerbaijan, saying that a “large amount” of gas was expected to be released to the market from fields under development in the Caspian Sea by 2028.
These include the Umid and Azeri-Chirag-Gunashli Deep Gas projects, as well as the further development of the already producing Absheron field.
Valiyev also said that gas that is saved due to Azerbaijan’s green energy agenda and energy efficiency measures would be an important source of additional supply.
“By the end of 2027, wind and solar power plants with a capacity of 1,862 MW are planned to be put into operation, which frees up more than 1 Bcm of gas,” he said.
Azerbaijan’s gas exports to Europe in January-September amounted to 8.6 Bcm, up 3.6% from the 8.3 Bcm reported in the year-ago period.
Total exports — including to Turkey and Georgia — amounted to 17.8 Bcm, an increase of 9.2% year-on-year.
Azerbaijan is seen as a reliable supply partner by the EU as it looks to replace Russian pipeline gas imports, which were sharply curtailed last year, pushing European gas prices to record highs.
Platts, part of S&P Global Commodity Insights, assessed the benchmark Dutch TTF month-ahead price at an all-time high of Eur319.98/MWh on Aug. 26, 2022.
Prices are now lower thanks to healthy storage levels and demand curtailments but remain historically high, with Platts assessing the TTF month-ahead price at Eur49.11/MWh on Nov. 9 .
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According to official data, Azerbaijan’s total gas production during January-September was 36.1 Bcm, up 4.9% on the year. Of the total, 19.7 Bcm was produced from Shah Deniz, while 9.6 Bcm was produced as associated gas from the ACG oil field. A total of 6.4 Bcm was produced from fields operated by Socar.
The country’s gas output has also been boosted by the startup in July of the Absheron field, which was reported as having produced 0.4 Bcm since production began.
TotalEnergies and Azerbaijan’s state-owned Socar announced the start of production at the first phase of Absheron — operated by their JOCAP joint venture — on July 10.
Production at Absheron will increase to 5.5 Bcm/year in the second phase of the project, TotalEnergies said in September.