IEA pre­dicts sig­nif­i­cant gas pro­duc­tion in­crease in Azer­bai­jan

Azer News - - Front Page - By Rashid Shiri­nov

The In­ter­na­tional En­ergy Agency (IEA) pre­dicts that an­nual nat­u­ral gas pro­duc­tion in Azer­bai­jan will grow to 55 bil­lion cu­bic me­ters over the next 20 years, IEA Ex­ec­u­tive Di­rec­tor Fatih Birol told re­porters in Baku on Septem­ber 12.

The In­ter­na­tional En­ergy Agency (IEA) pre­dicts that an­nual nat­u­ral gas pro­duc­tion in Azer­bai­jan will grow to 55 bil­lion cu­bic me­ters over the next 20 years, IEA Ex­ec­u­tive Di­rec­tor Fatih Birol told re­porters in Baku on Septem­ber 12.

“We pre­dict that over the next 20 years, the an­nual gas pro­duc­tion in Azer­bai­jan will grow from the present 18 bil­lion to 55 bil­lion cu­bic me­ters. This is very im­por­tant both for the Azer­bai­jani econ­omy and for the sta­tus of the coun­try as an ex­porter of nat­u­ral gas,” he said.

Birol men­tioned that Azer­bai­jan has es­tab­lished it­self as a re­li­able part­ner sep­a­rat­ing po­lit­i­cal is­sues from en­ergy in­dus­try.

The data by Azer­bai­jan State Sta­tis­tics Com­mit­tee say that pro­duc­tion of com­mer­cial gas in the coun­try amounted to 10.5 bil­lion cu­bic me­ters in Jan­uary-July 2018, which is 3.6 per­cent less than in the same pe­riod of 2017.

Birol also told re­porters that the IEA does not rule out fur­ther growth in oil prices un­til the end of the year. He said the growth of global oil de­mand, the de­cline in the Venezue­lan oil in­dus­try and the sit­u­a­tion in the Mid­dle East will re­main the main fac­tors.

“If other pro­duc­ers do not de­cide to in­crease pro­duc­tion, we can pre­dict the con­tin­u­a­tion of the growth trend un­til the end of the year,” he said.

Birol men­tioned that to­day oil prices reach $80 per bar­rel, and there are three key fac­tors. First, there is a strong growth in oil de­mand – about 1.4 mil­lion bar­rels per day. Se­condly, Venezuela, one of the main oil pro­duc­ers, has re­duced pro­duc­tion from 2.5 mil­lion to 1.2 mil­lion bar­rels of oil. Thirdly, there is un­cer­tainty in the Mid­dle East, Iran’s de­cline in ex­ports, as well as the un­sta­ble sit­u­a­tion in Libya and Nige­ria.

He fur­ther noted that the im­ple­men­ta­tion of the South­ern Gas Cor­ri­dor (SGC) pro­ject is im­por­tant both for Azer­bai­jan and for Turkey and Europe.

“For the Euro­pean Union diver­si­fi­ca­tion of en­ergy sources is a strate­gic task. The SGC is one of the most im­por­tant projects in this di­rec­tion. I am sure that the pro­ject will be com­pleted on time and its ca­pac­ity will grow over the years,” he said.

The South­ern Gas Cor­ri­dor is one of the pri­or­ity en­ergy projects for the Euro­pean Union, which aims to di­ver­sify routes and sources of en­ergy sup­plies and thereby im­prove the en­ergy se­cu­rity of the EU.

The open­ing cer­e­mony of the SGC was held in San­gachal ter­mi­nal in Baku on May 29. The cost of the pro­ject is over $40 bil­lion.

Gas as part of the Shah Deniz 2 field devel­op­ment is ex­ported to Turkey through the TANAP gas pipeline and will be ex­ported to the Euro­pean mar­kets through the ex­pan­sion of the South Cau­ca­sus gas pipeline and con­struc­tion of the TAP pipeline.

The In­ter­na­tional En­ergy Agency is an au­tonomous in­ter­gov­ern­men­tal or­ga­ni­za­tion es­tab­lished in the frame­work of the Or­gan­i­sa­tion for Eco­nomic Co-op­er­a­tion and Devel­op­ment in 1974. The IEA was ini­tially ded­i­cated to re­spond­ing to phys­i­cal dis­rup­tions in the sup­ply of oil, as well as serv­ing as an in­for­ma­tion source on sta­tis­tics about the in­ter­na­tional oil mar­ket and other en­ergy sec­tors.

Presently, the IEA acts as a pol­icy ad­viser to its mem­ber states, but also works with non-mem­ber coun­tries. The IEA has a broad role in pro­mot­ing al­ter­nate en­ergy sources, ra­tio­nal en­ergy poli­cies and multi­na­tional en­ergy tech­nol­ogy co-op­er­a­tion.

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