Russian expert: Azerbaijan will strengthen its position in European market

“Faced recession due to mild winter this year, the gas market has weakened more because of restrictions imposed by some countries due to the COVID-19. According to the International Energy Agency, global gas demand may decline 150 BCM or 4% in 2020; It will be the biggest decline in the history of the natural gas market,” Deputy Director of International Energy Policy and Moscow State Institute of International Relations Igbal Guliyev said.

“Despite the expectations about a gradual increase in demand as a result of low prices and the economic revival in 2021, the crisis stemmed from the coronavirus will cause longer-term problems for the natural gas market. The demand in the European market dropped by 7%. Expiration of long-term agreements in Europe will offer new opportunities for players like Azerbaijan. So, Azerbaijani gas has a good perspective on the European market for a mid-term period. Azerbaijan, which ranked first by meeting 24% of Turkey’s demand for gas in March, has exported 5.6 BCM of gas via TANAP since it started gas transportation two years ago. The TANAP, of which capacity is 16 BCM, is expected to transport 31 BCM in the future,” the expert said.

The Russian expert also noted that the 105 meter-part of the Trans-Adriatic Pipeline (TAP) through the bottom of the Adriatic Sea is about to be completed: “Both TAP and TANAP are parts of the Southern Gas Corridor (SGC), which will export Shah Deniz 2 gas. If we take into account the new gas pipelines, Azerbaijan may strengthen its position in the European gas market within 3-5 years.”