“Azerbaijan is entering a new and promising phase in expanding its oil and gas exports to European markets and neighboring countries,” Gaurav Sharma, an energy analyst, senior contributor to Forbes, and independent consultant, told AZERTAC
According to him, the commissioning of the Shah Deniz project in the 2000s and 2010s helped establish Azerbaijan as a major exporter of oil and natural gas on the global energy map.
The analyst noted that the measures put in place as part of the Southern Gas Corridor, as well as Phase 2 of the Absheron project, offer significant prospects for expanding Azerbaijan's gas export capabilities.
“The significance of these projects will become even more evident amid rising geopolitical tensions, especially as European countries seek to reduce their energy dependence on Russia. Azerbaijan’s hydrocarbon resources can help fill part of the gap in Europe's energy supply. In this regard, alongside Italy, Croatia, and Türkiye, there is potential to meet part of the energy demand of Azerbaijan's immediate neighbors, Georgia and Armenia. Currently, against the backdrop of new geopolitical realities, Southern European countries in particular are trying to lessen their reliance on Russian pipeline gas and other energy imports. At the same time, they are seeking to minimize the impact of geopolitical risks in various parts of the world on energy supplies. Under such conditions, Azerbaijan's growing gas exports are particularly important to Europe's energy security,” Gaurav Sharma emphasized.
The analyst pointed out that the role of the Southern Gas Corridor in this process is steadily increasing. Expanding the corridor's capacity could further consolidate Azerbaijan's position as a reliable energy supplier for Europe.
According to him, the Baku–Tbilisi–Ceyhan pipeline system has proved to be a reliable energy transport route. The development of Phase 2 of the Absheron field, alongside the Southern Gas Corridor, could further expand Azerbaijan's opportunities to contribute to the energy supply of Southern European countries.
Gaurav Sharma also highlighted the role of international partners investing in the region's energy sector. He noted that these partners include XRG of the United Arab Emirates, TotalEnergies, and SOCAR, the main Azerbaijani participant in the projects. This cooperation is of great importance for increasing the capacity of the Southern Gas Corridor and strengthening regional energy security.
The analyst added that Azerbaijan's annual natural gas production of approximately 50.6 billion cubic meters provides a substantial basis for further strengthening the country's position in the European energy market.
