Four European Union nations signed a deal with Azerbaijan on Monday for a wider distribution of gas in the bloc, with the Eurasian partner aiming to increase gas supplies to Europe to 423.78 billion cubic feet (12,000 million cubic meters) this year.
The memorandum of understanding (MOU) for the so-called Ring of Solidarity initiative paves the way for gas transfers from the State Oil Company of the Republic of Azerbaijan (SOCAR) through the infrastructure existing, said separate press releases from the parties to the agreement. The supplies would be delivered via pipeline networks of Bulgaria’s state-owned Bulgartransgaz EAD, Hungary’s FGSZ Ltd., Romania’s state-owned transgaz SA and Slovakia’s Eustream, also controlled by the government.
The deal, signed during a meeting between Azerbaijani President Ilham Aliyev and his Bulgarian counterpart Rumen Radev, follows a 2022 pact between the 27-member bloc and Baku to increase oil and gas shipments to the EU The memorandum of understanding on a strategic partnership in the field of energy approved on July 18, 2022 includes a commitment to double the capacity of the Southern Gas Corridor to at least 706.29 billion cubic feet (20 billion cubic meters ) in annual transfers to the EU by 2027, according to an announcement of the agreement by the European Commission.
“The MoU signed today, when implemented, will definitely strengthen energy security in Europe and allow Azerbaijan to export more gas to many more European countries,” Aliyev said at the signing ceremony in Bulgaria, according to a transcript on the site Azerbaijan presidential website.
“In 2021, we delivered 8 billion cubic meters to Europe. And this year, our goal is 12,” he added. “This will be almost half of our total export, which we plan for this year at a level of 24.5 billion cubic meters.”
Azerbaijan plans to deliver its first gas exports to Hungary and Slovakia this year “if all the necessary interconnectors are in place,” the president said, noting that in Europe his country already supplies Bulgaria, Georgia, Greece, Italy and Turkey.
Gas export from Azerbaijan to Romania has also started this year, he said. SOCAR and state-owned Romgaz SA closed in February a deal proposed last year to transport up to 35.31 billion cubic feet (billion cubic meters) of natural gas to Romania.
Aliyev also said: “We are in the process of negotiations with Albania to build a local gas distribution system, because the Southern Gas Corridor crosses the territory of Albania.”
Tuesday’s deal comes as the EU seeks to wean itself off Russian energy in response to its invasion of Ukraine. Russia was the EU’s main source of natural gas and oil from 2010 to 2020. It accounted for 38.2% of the bloc’s natural gas and liquefied natural gas imports and 25.7% of the EU’s crude oil imports in 2020, based on the latest percentage of energy imports. statistics from the EU agency Eurostat published on 13 April.
EU natural gas production has also continued to fall, down 7.6% to 1,755,874 terajoules in 2021 compared to 2020, according to Eurostat’s latest update. Meanwhile, domestic demand rose 4.3 percent in the same period to 15,834,900 terajoules, the EU statistics agency reported on April 13.
“Especially at a time when our partners need a reliable gas supply, solidarity and cooperation are essential,” Radev said at the ceremony, according to a President.az transcript. “The war in Ukraine has made us look for new dimensions of the concepts of good neighborliness, solidarity and cooperation. This essentially forces us to look for new solutions, new routes and supplies to be able to make changes to the international logistics map.”
Romanian Energy Minister Virgil-Daniel Popescu called for the deal to be expanded to include Moldova, Turkey and Ukraine. according to Trend News Agency of Azerbaijan. “Work should start immediately after signing the memorandum. The door should be open for Turkey, Moldova and Ukraine,” he said.
Tuesday’s agreement, which “establishes directions of cooperation” between SOCAR and the four gas distributors, was signed by Azerbaijan’s energy minister and cabinet representatives of the four EU states, the office said president of Azerbaijan announcing the signature.
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