Azerbaijan's gas production was unchanged on the year in April, but exports edged down.
Azerbaijan produced 4.1bn m³ of gas in April, in line with a year earlier, as the decline in output at Shakh Deniz was offset by growth at Socar's wells.
Shakh Deniz has been responsible for 54pc of Azeri output so far this year, but production dropped to 2.2bn m³ in April from 2.3bn m³ a year earlier. Output from Shakh Deniz 1 is exported to Georgia and then enters the Turkish grid at the Turkgozu point. Shakh Deniz 2 delivers gas through the 16bn m³/yr Trans-Anatolian pipeline (Tanap) and onto European markets through the 10bn m³/yr Trans-Adriatic pipeline.
The Azeri-Chirag-Guneshli complex accounted for 27pc and the Absheron field 3pc of overall Azeri production, at 1.1bn m³ and 100mn m³ respectively, unchanged on the year in April (see output graph). State-owned Socar's output rose to 700mn m³ from 600mn m³ a year earlier.
Exports to Europe account for half of sales
Half of Azeri exports were destined for European countries, and the Azeri government and EU recently discussed further co-operation in the energy sector.
European countries received 1bn m³ of Azeri supply in April, in line with a year earlier, and overall deliveries were 4bn m³ so far this year. Baku has pledged to lift its gas exports to Europe to 16-20bn m³/yr by 2027, up from 12.9bn m³ in 2024.
The further acceleration of co-operation in the energy sector was discussed by Azeri energy minister Parviz Shahbazov and the European Commission's director-general of neighbourhood and enlargement negotiations Gert Jan Koopman on 12 May. Azeri gas exports to the EU increased by 57pc in 2021-2024, and future growth is possible based on long-term contracts and the expansion of the Southern Gas Corridor (SGC), according to Shahbazov. The parties also discussed the EU's policy on financing gas projects.
They discussed co-operation in the realisation of the Green Energy Corridor which aims to increase energy and electricity trade between the region and the EU, and is set to be included in the 10-year development plan of the European Network of Transmission System Operators for Electricity (ENTSO-E). Azerbaijan aims to increase the share of renewable energy in its power mix to 30pc by 2030 from 3pc so far this year (see Azeri generation graph). The technical potential of Azerbaijan's renewable energy sources is 135GW on land and 157GW at sea, according to the ministry.
Azerbaijan exported 800mn m³ to Turkey in August, down from 900mn m³ a year earlier. Azeri deliveries to Georgia were 200mn m³ last month, unchanged on the year.
By Victoria Dovgal
