Azerbaijan expands its role as an energy hub

Azerbaijan is driving forward the expansion of both fossil fuels and renewable energies in order to further strengthen its position as a reliable energy supplier for Europe and emerging markets. This was stated by Energy Minister Parviz Shahbazov at the 31st Baku Energy Forum. In several discussion rounds, Shahbazov presented a comprehensive strategy that includes new funding projects, international electricity corridors and energy partnerships from South East Asia to North Africa. In view of the continuing uncertainties on the global energy markets, security of supply is becoming increasingly important. Growing importance for Europe's energy supply According to the minister, Azerbaijan covered 8.1% of the European Union's pipeline gas imports last year. Together, the country exported around 16.7 billion cubic meters of gas to Europe and 12.8 billion cubic meters to Turkey in 2025 and the first four months of 2026. A further 3.3 billion cubic meters went to Georgia and 800 million cubic meters to Syria. In total, Azerbaijan now supplies oil to more than 20 countries and natural gas to 16 states. According to Shahbazov, this broad geographical presence makes the country one of the most important pipeline energy exporters in the world. The current disruptions on important international energy routes have further strengthened Azerbaijan's strategic role. The Caspian Sea is increasingly developing into a central energy corridor between Asia and Europe. New extraction projects and expansion of gas production In the area of fossil fuels, production from the associated gas project in the Azeri-Chirag-Gunashli (ACG) field has already begun. The Karabakh oil field is scheduled to go into operation in 2027. Further major projects, including the complete development of the Absheron gas field, Shah Deniz Phase 3, Umid Phase 2 and the Babek gas field, are planned for the coming years. At the same time, the state-owned energy company SOCAR is expanding its activities in the Middle East, Central Asia and Africa in order to strengthen the country's long-term security of supply and market presence. Shahbazov also warned of the potential impact of new EU regulations on methane emissions. In his opinion, these could pose regulatory challenges for a significant proportion of global oil and gas production and thus increase the risk of supply bottlenecks. Billions invested in renewable energies At the same time, Azerbaijan is pursuing ambitious targets for the expansion of renewable energies. By 2035, their share of installed electricity generation capacity is to increase to around 43%. The plan is to build a total of 8 gigawatts of new capacity from renewable energies by 2032, of which 2 gigawatts are to be integrated into the national power grid by the end of next year. The country is also working on several international electricity connections. The feasibility study for the Green Energy Corridor between the Caspian Sea, the Black Sea and Europe is due to be completed in July. The project could gradually transport up to 3.9 gigawatts of electricity to Europe from 2032. Another energy corridor between Central Asia and Azerbaijan is being supported by the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB). The corresponding feasibility study should be available in 2027. New energy partnerships outside Europe In addition to Europe, Azerbaijan is also intensifying its energy cooperation with the D-8 countries, an association of large developing countries. Between 2022 and 2025, SOCAR supplied around 2.5 million tons of crude oil to Indonesia. In addition, a three-year LNG supply contract has been in place with the Egyptian General Petroleum Corporation (EGPC) since last year. Under this agreement, more than 1.3 million tons of liquefied natural gas have been supplied to Egypt to date. Negotiations on LNG deliveries to Bangladesh have also been concluded in the meantime. In addition, Baku sees further potential for cooperation with Malaysia in the technology sector and with Nigeria as a major natural gas producer. The post Azerbaijan expands its role as an energy hub appeared first on ostwirtschaft.de.