11
Aug
2022

Not so fast: Europe turns to Azerbaijan in hope of replacing Russian volumes

Only Subscribers can read the full Article

On 18 July, European Commission president Ursula von der Leyen and Azerbaijan’s president Ilham Aliyev met in Baku to sign a Memorandum of Understanding (MoU) that centres on doubling Azeri exports of gas to the EU by “at least” 20 Bcm/year by 2027. The MoU foresees the delivery of these additional volumes through the Southern Gas Corridor (SGC) and forms part of the EU’s plan for reducing its heavy dependence on Russia for pipeline gas.

The EU and Azerbaijan also agreed to “accelerate the development and deployment of renewable energy generation and transmission capacity” in Azerbaijan. The country will eventually evolve from a fossil fuel supplier to a renewable energy partner, von der Leyen said: “[Azerbaijan] are a crucial energy partner for us and always have been reliable not only for security of supply, but also in our efforts to become climate-neutral.”

But beyond the optimistic statements made by von der Leyen and her entourage in July, the MoU lacks substance. No plans or detailed strategies have been mentioned so far on how the increase in Azeri gas exports to the EU and renewable ambitions will be realised. According to industry sources, it is difficult to envisage how Azerbaijan can supply an extra 10 Bcm/year of gas to Europe within the next five years.

Subscription Benefits

Our three titles – LNG Business Review, Gas Matters and Gas Matters Today – tackle the biggest questions on global developments and major industry trends through a mixture of news, profiles and analysis.

LNG Business Review

LNG Business Review seeks to discover new truths about today’s LNG industry. It strives to widen market players’ scope of reference by actively engaging with events, offering new perspectives while challenging existing ones, and never shying away from being a platform for debate.

Gas Matters

Gas Matters digs deep into the stories of today, keeping the challenges of tomorrow in its sights. Weekly features and interviews, informed by unrivalled in-house expertise, offer a fresh perspective on events as well as thoughtful, intelligent analysis that dares to challenge the status quo.

Gas Matters Today

Gas Matters Today cuts through the bluster of online news and views to offer trustworthy, informed perspectives on major events shaping the gas and LNG industries. This daily news service provides unparalleled insight by drawing on the collective knowledge of in-house reporters, specialist contributors and extensive archive to go beyond the headlines, making it essential reading for gas industry professionals.

Did you know that your Internet Explorer Browser is out of date?

Your MS Internet Explorer browser is out of date, and will not be fully compatible with our website. For best browsing experience we recommend that you upgrade your IE browser to a more recent version or use an alternative, more recent browser.