BAKU, Azerbaijan, July 23. Azerbaijani gas supply via the Trans Adriatic Pipeline (TAP) has consistently operated at maximum capacity, averaging 30-34 million cubic meters per day since September 2022, Trend reports citing the Oxford Institute of Energy Studies (OIES).
The institute noted that between Q2 2023 and Q2 2024, Azerbaijani pipeline gas supply increased from 2.812 billion cubic meters to 2.935 billion cubic meters, marking a 4.4 percent rise of 123 million cubic meters.
Looking ahead to the third quarter, OIES anticipates robust pipeline imports from Norway and Russia, while imports from North Africa and Azerbaijan are expected to remain steady. European production is projected to continue its decline year-on-year.
The institute also predicts that storage injections will likely be lower, and if gas demand remains subdued, European LNG imports will also be lower compared to the previous year. This reduced call on LNG in Europe is expected to support continued growth in non-European LNG demand, given the limited growth anticipated in global LNG supply for the remainder of the year.
OIES further highlights that stable supply from North Africa and Azerbaijan, combined with strong supply from Norway and Russia, suggests a higher overall volume of pipeline imports into Europe in 2024 compared to the previous year. The report concludes that reduced consumption and slower summer storage injections will continue to diminish the demand for LNG despite a gradual decline in European production.
Azerbaijan initiated gas transportation to Europe through the Southern Gas Corridor on December 31, 2020. This corridor facilitates the transport of gas from the Caspian Sea region to European countries, passing through Georgia and Türkiye. The project, with a total cost of 33 billion US dollars, is anticipated to recoup its capital costs within 8–10 years.
In July 2022, Azerbaijan and the European Union reached an agreement to double the volume of gas supplies via the Southern Gas Corridor, from the current 10 billion cubic meters to 20 billion cubic meters by 2027.
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