Next meeting of Azerbaijan-European Union Energy Dialogue held in Brussels

Another meeting within the high-level energy dialogue between Azerbaijan and the European Union (EU) was held in Brussels, the Kingdom of Belgium, in order to develop the energy partnership at a new stage. Azerbaijan-EU cooperation on diversification of gas supplies, development of renewable energy and energy efficiency priorities was discussed at the meeting under the leadership of Energy Minister Parviz Shahbazov and European Union Commissioner for Energy Kadri Simson, representatives from the Ministry of Energy, SOCAR, AREA, European Commission Directorate General for Energy (DG Ener), European Investment Bank (EIB), European Bank for Reconstruction and Development (EBRD).

Energy Minister Parviz Shahbazov said that the implementation of the document on strategic partnership between the EU and Azerbaijan in the field of energy necessitates strengthening joint efforts to increase natural gas exports from Azerbaijan to Europe by 2027 to 20 billion cubic meters: "The supply of additional gas requires expanded supply routes. From this point of view, the expansion of the Southern Gas Corridor is a strategic priority. Significant investments and financial instruments are needed to start work on the expansion of the project and achieve progress. In this regard, the support of European partners is important."

The Minister also stressed that along with the Southern Gas Corridor, the development of infrastructures that bring and diversify energy resources from a safe and reliable source to Europe, such as the "Solidarity Ring" route, as well as the Caspian-EU "Green Energy" Corridor, is important for comprehensive energy security.

Assessing Azerbaijan's contribution to Europe's energy security during the energy crisis, EU Energy Commissioner Kadri Simson said that as the EU is moving from crisis management to medium term strategic planning, we are also looking into EU's expected gas demand, which is one of the important questions around the expansion of the Southern Gas Corridor: "We support the expansion of the corridor. Today's meeting helped us with crafting the next concrete steps. In line with our REPowerEU plan, the EU is already supporting our South Caucasus neighbours and partners in increasing their renewable energy generation. Azerbaijan's low methane emissions in the Caspian region, for example, would offer possibilities to jointly champion the country's leading position as regards methane action.

The energy dialogue continued with presentations and discussions on the current state of gas supply in Europe, the role of the Southern Gas Corridor in anti-crisis measures, renewable energy, energy efficiency, as well as gas infrastructure policies of the European Investment Bank (ADB), the European Bank for Reconstruction and Development (EBRD) and financial instruments to support the development of "green energy". The information on demand volumes determined on the basis of increased interest in gas supply from Azerbaijan, expected production and export opportunities from fields currently in the development and exploration stage, necessary steps to expand the Southern Gas Corridor, implementation status of green energy transmission and energy efficiency measures were given. The prospects and procedures for achieving the status of a mutual interest project for the Caspian-EU "green energy" corridor, as well as opportunities for cooperation with European financial institutions on existing and planned energy projects in Azerbaijan were considered. Within the various programs, proposals for cooperation with the EU on technical, financial support and other assistance in the fields of "green energy", including "green hydrogen" and ammonia, energy efficiency, application of CCUS technologies in the energy sector and reduction of methane emissions were evaluated. Further development directions of cooperation within the Energy Dialogue have been determined.

It should be noted that an agreement was reached on the creation of an energy dialogue between the EU and Azerbaijan at a meeting held on 4 February 2022 within the Ministerial Meeting of the Southern Gas Corridor Advisory Council between the President of the Republic of Azerbaijan Mr. Ilham Aliyev and European Commissioner for Energy Kadri Simson.