BAKU, Azerbaijan, March 5
By Leman Zeynalova – Trend:
The ongoing Russian-Ukrainian crisis has significantly affected the energy markets worldwide, with oil and gas prices reaching record high levels. Amid the gas price hike in Europe, the expansion of the Southern Gas Corridor once again became relevant.
Italian Prime Minister Mario Draghi said that the country needs to think about increasing the regasification capacity and a possible doubling of the capacity of the Trans Adriatic Pipeline.
Bulgaria also said that it intends to negotiate with Azerbaijan on additional gas imports in the case of termination of supplies from Russia. The country’s energy minister Alexander Nikolov pointed out that there are real alternative sources, including the Southern gas Corridor, in the case of problems with Russian supplies.
Moreover, Hungary is currently holding negotiations with Azerbaijan that Hungary will be able to acquire another source of natural gas by increasing the production of Shah Deniz gas field. The country’s foreign minister Peter Szijjarto noted that it’s time for Azerbaijani gas to appear on the Hungarian market.
TAP Managing Director Luca Schieppati, for his part, says that the pipeline will reach its full capacity of 10 billion cubic meters per year in 2022 and 2023. TAP is currently able to transport 10 billion cubic meters and additional 500 million cubic metres in the short term. Around 40 months would be required for infrastructure investments after the signing of contracts and more than 50 months to fully double the pipeline’s capacity.
Another important message this week came from the project company responsible for construction of the Interconnector Greece-Bulgaria (IGB), which said the pipeline could export natural gas to countries in southeastern Europe, as well as Ukraine. IGB will facilitate physical transportation of natural gas from south to north so all shippers that have the interest to transport gas to countries in Eastern Europe including Ukraine will have that option.
SOCAR Turkey, subsidiary of Azerbaijan’s state oil company, has launched an open innovation platform. SOCAR Wennovation open innovation platform offers an open and collaborative approach to SOCAR Turkey's digital transformation opportunities, aiming to partner with worldwide companies and academia. Potential stakeholders, who offer solutions for SOCAR Turkey's digital needs, will have the opportunity to become a business partner of the company, conduct tests in the field, develop products or services by easily applying via wennovation.socar.com.tr.
SOCAR Marine, subsidiary of Azerbaijan’s state oil company, has started fuel sales in Turkey’s domestic market. SOCAR Marine, which operates in the international marine fuel sector, has been selling around 700,000 tons of fuel per year. Now the company will also serve Turkish ports with market potential of 450,000 tons.
SOCAR and Romanian Transgaz signed a document to extend the memorandum of understanding signed in 2016 for six more years.
Azerbaijan supported decision adopted at the 26th Ministerial Meeting of OPEC and non-OPEC countries to increase daily oil output by 400,000 barrels in April 2022. The new Declaration of Cooperation envisages an increase in daily crude oil production in Azerbaijan by 7,000 barrels in March this year to reach 682,000 barrels, while the reduction commitment is 36,000 barrels.
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