Insight
Can Azerbaijan double gas exports to Europe?
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
In 2022, as Europe raced to wean itself off Russian gas, Azerbaijan signed a landmark Memorandum of Understanding (MoU) with the EU to double exports to 20 bcma by 2027. Two years on, this ambition is already out of sight. Why? Azerbaijan hasn’t moved quickly enough to grasp the opportunity. Much has changed since the dizzying heights that prices reached in 2022. But the EU is still pushing to diversify its gas supply, and Azerbaijan remains home to vast untapped gas resources. The upstream and midstream expansion required is beset by commercial and market challenges. Can Azerbaijan overcome these obstacles and fulfil its long-term ambition of becoming a gas supplier of choice to the lucrative European market?
Table of contents
- Why is Azerbaijan targeting more exports to Europe?
- Does Azerbaijan have capacity to boost exports?
- Which gas projects could help increase Azerbaijani exports to Europe?
- Midstream expansion is also required for additional access to market and lower transport tariffs
- Can Azerbaijani volumes compete with other sources of supply?
Tables and charts
This report includes the following images and tables:
- Discovered resources by product type
- Annual contract quantity (ACQ) and gas demand covered by Azerbaijani gas by destination market
- Azerbaijan production and exports (base case)
- Azerbaijan has a promising cohort of gas-led DROs
- Azerbaijan gas production profile*
- Breakeven prices of key pre-FID developments
- The Southern Gas Corridor (SGC) pipeline value chain comprises three pipelines
- Pipeline expansion scenarios
- We have calculated indicative transportation tariffs under various expansion scenarios
- Piped gas and LNG costs delivered to Europe (incl. regas)*
What's included
This report contains:
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