BAKU, Azerbaijan, Jan.15
By Leman Zeynalova – Trend:
The most important event of this week was the groundbreaking ceremony for the 240-megawatt “Khizi-Absheron” Wind Power Plant to be built in Azerbaijan by ACWA Power of the Kingdom of Saudi Arabia. The construction of the station will take nearly 18 months. The station will be located in the Khizi and Absheron regions. After commissioning, this power plant is expected to produce 1 billion kilowatt hours (kWh) of electricity per year. This means that about 300,000 homes will be provided with electricity. The project will attract $300 million of foreign investment. The station will save 220 million cubic meters of natural gas. This means preventing the emission of 400,000 tons of carbon dioxide into the atmosphere.
Another highlight of the week was the signing of a Memorandum of Understanding on cooperation in the field of offshore wind energy between Azerbaijan’s Ministry of Energy and ACWA Power of the Kingdom of Saudi Arabia. The Memorandum envisages the identification of the main principles of cooperation in the field of offshore wind energy, assessing the potential and providing the conditions for profitable investment in renewable energy projects in Azerbaijan.
In fact, this week can be regarded as a week of green energy in Azerbaijan. Iran announced that it has joint plans with Azerbaijan to make maximum use of the potential of the Araz River. According to the memorandum approved between the two countries, Khudafarin and Giz Galasi hydro junctions were built. Along with regulating the water of the Araz River, these hydro junctions created an opportunity to build hydroelectric power plants. On this basis, two HPPs will be built by the Iranian company and needed funds will be provided by both countries. Iran is ready to build a thermal power plant in Azerbaijan. In this regard, research will be conducted on the construction of the power plant in Azerbaijan. The electricity generated by this power plant will be used jointly.
Moreover, the Energy Charter Secretariat has proposed Azerbaijan to work together on green hydrogen transportation. The Secretariat proposed deepening the cooperation between the Secretariat and the Government of the Republic of Azerbaijan by working together on energy transition and green hydrogen transportation.
President of Turkey Recep Tayyip Erdogan approved the memorandum of understanding between the Ministry of Energy and Natural Resources of Turkey and the Ministry of Energy of Azerbaijan on the supply of natural gas. The memorandum, which was signed on December 22, 2021 in Baku, provides for the supply of up to 1.7 billion cubic meters of gas to SOCAR Turkey Refining and Petrochemical Business Unit by BOTAS annually until December 31, 2024 to meet the necessary needs of SOCAR Turkey Energy enterprises.
This week Azerbaijan announced the Baku Energy Week to be held in Baku from June 1-3. The program of the Baku Energy Forum includes the following topics: The future of energy at the crossroads of development paths. Renewing green energy; Impact of the COVID-19 pandemic on the energy sector and recovery forecast; New benchmarks for oil and gas in the new energy era. From an oil and gas company to an energy company; Oil and gas technologies; Artificial intelligence (AI) in oil and gas development and others.
As for oil exports, Azerbaijani oil exports via the Baku-Tbilisi-Ceyhan pipeline are expected to decrease in February 2022, as compared to January. The schedule shows that Azerbaijani BTC crude oil exports from Turkey's Ceyhan port was set at 14.72 million barrels in February from 17.27 million barrels in January.
The US Energy Information Administration (EIA) revealed forecasts for Azerbaijan’s 2022-2023 petroleum production. EIA expects that petroleum and other liquids production in Azerbaijan will stand at 0.74 million barrels per day (mb/d) in 2022, unchanged from the previous forecast. EIA estimates that Azerbaijan will produce 0.73 mb/d in Q1 and 0.74 mb/d in the subsequent three quarters of 2022 each. Azerbaijan is expected to produce 0.71 million barrels per day in 2023. The quarterly production will stand at 0.72 million barrels per day in Q1, 0.71 million barrels per day in Q2, 0.70 million barrels per day in Q3 and 0.72 million barrels per day in Q4.
The Trans Adriatic Pipeline (TAP) revealed the actual volume of gas transportation in 2021. The volume of natural gas transportation from Azerbaijan to Italy via the Trans Adriatic Pipeline from December 31, 2020 to December 31, 2021 stood at 6.8 billion cubic meters. 1.2 billion cubic meters of the total 8.1 billion cubic meters of gas transported by TAP went to Greek and Bulgarian markets.
---
Follow the author on Twitter: @Lyaman_Zeyn
