S&P: "Outlook for Azerbaijan's gas sector is stronger"

"The outlook is stronger for Azerbaijan's gas sector," S&P Global Ratings said in a statement, Report informs.

According to the Agency, production at the new Shah Deniz II gas field commenced in 2018 and the two related pipelines, TANAP and TAP, carrying the gas to Turkey and Europe respectively, became operational in 2019-2020: "Consequently, between 2017 and 2021, Azerbaijan's gas production rose by an estimated 73% and is set to rise by a further 20% through 2025, according to official plans. Nevertheless, even considering this recent production ramp-up, gas exports will play a relatively modest role in Azerbaijan's economy, accounting for about 20% of hydrocarbon exports compared with oil's contribution of close to 80% over the medium term. Additionally, although spot European gas prices have hit record highs, Azerbaijan will benefit from this only partially because most of its contracts are long term, with prices linked to oil."