ADVERTISEMENT
...

Weekly review of main events in Azerbaijan’s energy market

Energy Materials 12 September 2022 09:17
Baku, Azerbaijan Trend News Agency
Weekly review of main events in Azerbaijan’s energy market

Last week it became known that Moldova is considering signing a long-term contract with Azerbaijan, for gas supply, Trend reports.

Moldovan government is preparing for emergencies and is currently discussing the signing of a long-term gas supply contract with Romania and Azerbaijan.

Furthermore, Serbia is negotiating with Azerbaijan on early signing of a gas supply contract.

Besides, last week the planned volume of Azerbaijani gas supply to Bulgaria was revealed. According to the forecasts, 600 million cubic meters of gas will be exported to Bulgaria by the end of the year.

The cost of the project of Greece-Bulgaria Interconnector (IGB), which provides for the transportation of Azerbaijani gas, reached 213 million euro as of July 31,2022.

In addition, negotiations were initiated to increase the capacity of the pipeline for transit of Azerbaijani gas to Bulgaria.

It's planned to increase the capacity of the Greece-Bulgaria Interconnector (IGB), providing for the transportation of Azerbaijani gas, from three to five billion cubic meters in 2024.

Moreover, last week the Fitch Ratings international rating agency shared its outlook on the demand for Azerbaijani gas in the EU.

The EU demand for Azerbaijani gas in 2022 and 2023 is forecasted at 12 billion cubic meters. This will make Azerbaijan the fourth largest exporter of natural gas to the EU after the liquefied natural gas (LNG) exporting countries, as well as Norway and African countries.

In addition, SOCAR State Oil Company of Azerbaijan will be engaged in exploration of oil fields in Türkiye.

Azerbaijan and Türkiye reached an agreement on the exploration of oil fields by SOCAR in Turkish Batman.

Also, last week it was reported that the US Department of Energy has changed its forecasts for oil production in Azerbaijan.

The Energy Information Administration (EIA) of the US Department of Energy forecasted that the production of oil and other liquid hydrocarbons in Azerbaijan will average 0.67 million barrels per day in 2022 compared to 0.66 million barrels per day in the previous report.

According to the department, production of oil and other liquid hydrocarbons in Azerbaijan amounted to 0.7 million barrels per day in the first quarter of 2022 and 0.67 million barrels per day in the second quarter of 2022.

Production in the third and fourth quarters of 2022 is forecasted to be 0.67 million barrels per day and 0.66 million barrels per day, respectively.

According to the EIA forecast, Azerbaijan will produce 0.64 million barrels per day in 2023 up from 0.61 million barrels per day compared to the previous report.

Last week, it was reported that Azerbaijan and Bulgaria discussed the possibility of exchanging electricity for gas. Bulgaria is one of the largest producers of electricity in the region, while most of Azerbaijan's facilities are entirely gas-fired. If Bulgaria guarantees electricity supplies, Azerbaijan can commit to redirect free gas volumes to Bulgaria.

Moreover, the European Bank for Reconstruction and Development (EBRD) supported the Ministry of Energy of Azerbaijan to develop a system of renewable energy sources, including a regulatory body and auctions for renewable energy sources.

Tags:
Latest

Latest