Expert: Development of new gas reserves to allow Azerbaijan enter new European markets

Commissioning of the Absheron deep-water gas and condensate project in the Caspian Sea not only offers new investment opportunities in Azerbaijan’s upstream sector but, equally, enhances energy security of the country and its export markets, Slawomir Raszewski, Program Leader on the MSc Oil and Gas Management (OGM) in the Royal Docks School of Business and Law (RDSBL), University of East London (UEL), told Report.

"As much as new energies become ‘new normal’ helping to diversify energy mix, conventional energy production is set to continue as the world needs more, not less, energy.

It is no wonder that the new development is welcomed both by the energy industry and energy consumers. With the existing infrastructure in place, we can expect further increase in export volumes destined to Europe, in line with the policy. Depending on their capacities and necessary upgrades, the key Pipelines comprising the Southern Gas Corridor are likely to accommodate the increased export volumes in the coming years. In the new geopolitics of natural gas supplies to Europe, the role of Azerbaijan as an alternative supplier of the blue fuel is set to continue to grow," he noted.

"Azerbaijan has a great renewable energy potential including hydro, solar, wind, and geothermal. Hydroelectricity, in particular, which is currently the key source of renewable energy power generation, is likely to grow in importance in the years to come. Additional hydroelectricity power plants are being constructed on the territory of Garabagh, following its liberation, and will further tap the renewable energy potential of Azerbaijan," the expert said.

The green economy transition trend is set to continue helping to further diversify the country’s economy while making it more attractive to invest in the country’s renewable energy, he added.