Within the Baku Energy Week, Azerbaijan’s Minister of Energy Parviz Shahbazov, addressed Ministerial Plenary Session: International Cooperation for a Resilient and Diversified Energy Future at the 31st Baku Energy Forum.
In his remarks, the Minister noted that the platform, established at the initiative of National Leader Heydar Aliyev and strengthening the Caspian region’s position on the global energy map, this platform has entered a new phase with green energy partnerships and Azerbaijan’s growing role as an investor. Addressing the challenges observed global energy markets, it was noted that recent geopolitical events and supply risks have further heightened the importance of energy security and Azerbaijan’s role within this new reality. "By connecting the Caspian Sea with the Black, Mediterranean and Adriatic Seas through stable routes, Azerbaijan acts both as a reliable energy supplier and as an important strategic actor that turns the Caspian region into a key logistics and connectivity hub of the Middle Corridor. If, in the 20th century energy power was measured mainly by production, in the 21st century the key factors defining this power are secure routes, connectivity and reliable partnerships. Azerbaijan is among the rare countries that combine all of these advantages", the Minister said.
The Minister stated that despite existing investment restrictions in the oil and gas sector, energy production in Azerbaijan is entering a new phase of development. In this context, the launch of the first free gas production from the Azeri-Chirag-Gunashli field block, the full-scale development of the Garabagh oil field, the Shah Deniz Compression, Absheron Full Field Development, Umid Phase II and the Bahar Gum Deniz gas projects, as well as onshore and offshore exploration projects, and SOCAR's investments in the Middle East, Central Asia and Africa are expected to be put into operation. Last year, Azerbaijan accounted for 8.1 percent of the EU’s pipeline gas imports. Over the past year and in the first four months of this year, Azerbaijan exported 16.7 bcm of gas to Europe, 12.8 bcm to Türkiye, 3.3 bcm to Georgia, and 800 million cubic meters to Syria.
Minister Parviz Shahbazov stressed that the energy transition does not diminish the importance of global energy security and said that oil will continue to play an important role in the transport, industrial and chemical sectors for a long time. Driven by artificial intelligence, data centers and digitalization, demand for electricity is growing rapidly, reinforcing the importance of natural gas in the energy mix. Moreover, the energy transition increases the importance of critical minerals and sustainable supply chains, making energy security one of the key elements of national security.
The Minister noted that the energy policy of the HE President of Azerbaijan Mr. Ilham Aliyev based on the balanced development of the country’s oil, gas and renewable energy sources, as well as the diversification of supply routes and energy connectivity is a proven and strategically sound approach fully aligned with today’s global energy realities. This policy enables Azerbaijan to energy security and successfully implement its green agenda. It was noted that plans to develop 8 GW of renewable energy by 2032 are being successfully implemented. The integration of 2 GW of this capacity into the national grid will be completed next year. Grid studies aimed at increasing the share of renewables in installed capacity to - about 43% by 2035 are nearing completion. It was also stated that the feasibility study for the Caspian-Black Sea-Europe Green Energy Corridor project will be completed by July this year. The feasibility study for the Central Asia-Azerbaijan Energy Corridor project is expected to be completed in May 2027. "The Azerbaijan-Türkiye Energy Hub as well as the Azerbaijan-Georgia-Türkiye-Bulgaria Power Corridor projects have already entered an active phase, driven by the strategic unity and leading role of Azerbaijan and Türkiye. In particular, the Trump Route for International Peace and Prosperity, in line with the Head of the State’s policy of bringing peace to the region and strengthening it through connectivity, is creating a strategic foundation for the formation of the Central Asia-Azerbaijan-Türkiye-Europe energy architecture", the Minister added.
