Gas extraction in Azerbaijan to exceed oil production

15:23 - 14.10.2024


October 14, Fineko/abc.az. According to the forecasts of independent research company Rystad Energy, gas production in Azerbaijan will soon surpass oil production. This will be possible thanks to some large projects.

ABC.AZ reports that company's analysts, country's gas industry is developing rapidly, and by the end of the decade, gas production is expected to increase by 51% up to 40 bcm a year compared with 2020.

"A significant boost to the gas industry was given in 2018 after the launch of Shah Deniz 2, which allowed to increase commercial gas production by 83% from 2017 up to almost 36 bcm last year. Shah Deniz alone ensured about 72% of the total gas production," Rystad Energy noted.

Accordingly, as the analysts of the Norwegian company said, gas exports also increased - from 9.6 bcm in 2018 to about 24 bcm last year.

"About half of these supplies were sent to Europe, the rest to Türkiye and Georgia. In the 2nd half of 2022, Azerbaijan signed a memorandum of intent to increase exports to Europe up to 20 bcm by 2027, with Shah Deniz playing a key role. To ensure these additional volumes to Europe through the Southern Gas Corridor, Azerbaijan is considering doubling the capacity of the Trans-Adriatic Pipeline (TAP) up to 20 bcm, increasing capacity of the Trans-Anatolian Pipeline (TANAP) from 16 up to 31 bcm, as well as expanding capacity of the South Caucasus pipeline from 24 up to 31 bcm," the company said.

The expansion of these pipelines requires significant investments.

"Azerbaijan's ambitions to increase gas exports will require long-term commitments and commercial agreements with European buyers. Implementation of these projects will depend on a range of factors, including economic conditions, alternative sources and routes of gas supplies to Europe, as well as possible geopolitical events," the company said.