IEA: Azerbaijan’s natural gas production rose by 3% in heating season

In Azerbaijan, natural gas production rose by 3% during the period October 2023-February 2024, supported by higher gas exports and stronger domestic demand, Report informs, citing the International Energy Agency (IEA).

In Eurasia, natural gas demand rose by an estimated 4% year over year during the 2023–24 heating season. A colder winter supported higher space heating requirements, while lower nuclear availability in Russia increased the call on gas-fired power plants.Russia’s natural gas production increased by 7% (or 20 bcm) year over year over the October 2023-February 2024 period. This growth was partly driven by stronger piped gas exports, including to China, Europe and Central Asia, as well as higher LNG supplies and rising domestic demand.

In Central Asia, natural gas production increased marginally amid higher output in Kazakhstan and Turkmenistan, while Uzbekistan recorded a drop of 8% (or 1.7 bcm) y-o-y during the reporting period.

Global gas demand is forecast to grow by 2.3% in 2024. The IEA anticipates growth being capped in import markets by the limited increase in global LNG supply, which is expected to expand by a mere 3% (or 16 bcm). Industry is expected to account for around 45% of incremental gas demand in 2024.

Russia’s piped gas supplies increased by an estimated 25% (or 5 bcm) y-o-y through the 2023–24 winter season, -albeit remaining 70% below their levels during the 2020–21 gas winter.

Deliveries to the European Union increased by 9% (or 1 bcm). Exports to Türkiye rose by 50% year over year through October 2023 – February 2024. Despite this increase, the share of Russian piped gas in Europe’s gas demand remained below 10% over the 2023–24 gas winter. Pipeline gas deliveries from North Africa and Azerbaijan remained broadly flat compared to the previous heating season.