Author: Leila Tariverdieva
“Oil, gas, wind, sun, gold, silver, copper – all these are natural resources. You cannot blame countries for having these resources. you also cannot blame them for bringing these resources to the market. As the market needs them. The people need them.So here’s my message: As president of COP29, we will of course strongly advocate for a green transition, and we do. But at the same time,we must be realistic.” President Ilham Aliyev said this at the opening of the COP29 Leaders’ Summit on November 12. These words of his became the subject of discussion and a reason for “indignation” on the part of critics of Azerbaijan.
The day before, secretary General of the Institution of Petroleum Exporting Countries (OPEC) Haitham al-Ghais joined the position of the Azerbaijani leader. Speaking at COP29 in baku, he said: “Oil and gas remain key resources for producers and consumers around the world. As Azerbaijani President Ilham Aliyev emphasized at the opening of COP29, oil and gas truly are God’s gift.”
OPEC Secretary General emphasized the position of President Ilham Aliyev at COP29: oil and gas are “God’s gift” – VIDEO
A realistic view of processes is what many politicians lack. Talking about fossil fuels is now considered “bad form”, and they are trying to make extracting countries the main culprits of climate problems. However, oil and gas continue to be needed by everyone, and this is a reality. Azerbaijan, as the COP29 conference showed, is capable of properly using God’s gift and at the same time becoming a leader in the region in terms of projects in the field of renewable energy sources. This is a real policy that appeals to our country’s partners, of whom there are more and more.
News in the media about the meeting of German Vice-Chancellor Robert Habeck,who was in Baku to participate in COP29,with Azerbaijani energy Minister Parviz Shahbazov and Economy Minister Mikail Jabbarov,caused some excitement. The reason was that at the meeting, along with the issues of green hydrogen and offshore wind energy, the topic of exporting Azerbaijani gas was also discussed. As is known, Germany is not among the importers of Azerbaijani gas, and many, including foreign journalists who began to besiege local experts, had questions.
We also turned to the head of the Azerbaijan petroleum Research Center (APRC) Ilham Shaban for comment. The expert confirmed that Germany does not buy gas directly from Azerbaijan. However,the German company Uniper is one
There is no necessary gas transportation infrastructure between the two countries,and gas contracts between Azerbaijan and Germany are still a matter of distant prospects,the expert noted. Now we are talking only about preliminary contacts on this topic. If the issue comes to a practical level, then Azerbaijan has something to offer – it has 5 billion cubic meters of gas in the Absheron-2 project, awaiting its buyer.Ilham Shaban considers laying a gas pipeline from Bulgaria to a gas distribution hub in Austria a possible option for Germany to receive Azerbaijani gas directly. “But it is not we who must solve this problem, but our European partners,” Shaban emphasized.
It should be noted that Uniper does not hide its interest in increasing purchases of Azerbaijani gas. As the head of the Uniper representative office in Azerbaijan, Rashad Huseynli, told reporters, the previously concluded contract provides for the annual purchase of 1.5 billion cubic meters of gas from Shah Deniz. Negotiations are currently underway with SOCAR to increase supplies.
At the end of August, Carsten popping, a member of the board of directors and chief commercial director of Uniper Se, visited baku and met with SOCAR president rovshan Najaf.And before that, Uniper Vice President Michael Gilmer visited Azerbaijan as part of the Baku energy Week.During plenary discussions on the role of gas supplies during the energy crisis, he emphasized that Azerbaijani gas is in great demand in Europe.
Earlier, Tobias Baumann, executive director of the German-Azerbaijani Chamber of Commerce, expressed hopes for an increase in purchases of Azerbaijani gas. According to him, the cooperation between Uniper and SOCAR is very valuable from the point of view of transporting gas from Azerbaijan along the Southern Gas Corridor to Germany. Baumann believes it is indeed necessary to consider the possibility of increasing the supply of Azerbaijani gas, as this is what Germany will need in the future. “The document signed between Azerbaijan and the European Commission provides for doubling gas supplies from the Caspian region to Europe by 2027, and I think that Germany will receive a good share of these supplies provided by Uniper,” said the head of the Chamber of Commerce.
studying the possibilities of natural gas supplies and the use of gas infrastructure. The parties will also explore opportunities for cooperation in the field of green transition and the use of decarbonized gases.
As Managing Director of VNG Handel & Vertrieb GmbH Konstantin Herzog von Oldenburg stated during the 29th Baku Energy Forum, the company hopes to sell gas produced by SOCAR in the future. “We work in the field of import and wholesale trade of gas, selling approximately 15-18 billion cubic meters. I’m not talking about the balance of gas, we are talking about physical sales in Germany and neighboring countries. Previously, we imported Russian and Norwegian gas to Germany. From this “We began importing Algerian gas and hope in the future to supplement our portfolio with gas produced by SOCAR,” he emphasized.
The issue of energy security is indeed very acute in europe.Germany is one of the leaders in the decarbonization movement. But the country realizes that giving up gas is unachievable today. The green transition is only a prospect that will require many years of work. and today the world continues to live in the current reality, and this should be taken into account.
What is the export price of Azerbaijan’s natural gas in the state budget for 2025? – NUMBERS
In early November, the price of gas in Europe soared to a yearly high and reached $508 per thousand cubic meters.The day before this rise, December futures were worth $485. The price rise was provoked by the victory of the Austrian oil and gas company OMV in court against Gazprom, from which the Austrians intend to receive 20 million euros for “irregular gas supplies.” After such a court decision, a shortage of blue fuel is expected in Europe, and expectations of a shortage are always followed by an increase in price. Winter is approaching, and the relaxation with which Europeans have spoken in recent months about the need to abandon gas and oil is giving way to concern. Especially in connection with the beginning of the process of abandoning Russian fuel. Thus, last week the German Ministry of Economic Affairs and Climate Protection demanded that the operator of liquefied natural gas (LNG) terminals abandon russian fuel. According to The Financial Times, the agency instructed Deutsche Energie Terminal not to accept any LNG supplies to Russia, explaining that this is necessary to protect state interests and to ensure the independence of Germany and the European union from Russian gas.
Despite the challenges ahead,there are few European politicians who can muster the courage to tell the truth: an accelerated transition away from fossil fuels is not possible. No slogans,no pickets,resolutions and demands can cancel the reality in which civilization is not ready to give up gas and oil right now. Yes, sooner or later this will need to be done, but an immediate energy transition will lead to the destruction of the world economy and, as a consequence, to conflicts and even wars.It is not difficult to imagine what consequences this chaos will have in the context of a highly industrialized civilization.
Italy is a leader in nuclear fusion – George Meloni
One of the politicians who is looking at the situation realistically is Italian Prime Minister Giorgia Meloni.Speaking in Baku at the COP29 Leaders’ Summit,Ms. Meloni spoke about the importance of taking into account decarbonization of the sustainability of the production and social systems created in countries.”Humans must protect nature. A lack of ideological and pragmatic approach in this matter risks deviating from the path that leads us to success. technological neutrality is the right approach,as at present there is no single option to the supply of fossil fuels. We must have a realistic global outlook. By 2030,the world’s population will reach
8.5 billion, and global GDP will double in the coming decade, taking into account the growing need for the advancement of artificial intelligence. will increase energy consumption,” the Italian prime minister said, adding that there is a need for a balanced mix of energy.
It should be noted that since the beginning of 2024,Italy has increased imports of natural gas from Azerbaijan by almost 12 percent year on year. According to Eurostat, from January to july, Italy imported 5.7 billion cubic meters of gas from Azerbaijan. for comparison, for the same period last year this volume amounted to 5.3 billion cubic meters.Over the entire last year,italy purchased 9.3 billion cubic meters of Azerbaijani gas.
During a visit to Germany in April this year, President Ilham Aliyev emphasized in a press statement that by 2027 Azerbaijan intends to increase the volume of gas exported to Europe to 20 billion cubic meters. Demand for natural gas from new sources is growing in Europe. If in 2021 we supplied 8 billion cubic meters of gas to the EU countries, this year this figure reached 12 billion cubic meters. “We are making additional investments, allocating additional funds to support European countries in this matter,” the President said.
The cold season is approaching, and Europeans will really need this support.
What role does Azerbaijan play in the European energy market amid rising natural gas supply concerns?
Natural gas supplies is beginning to wane as thay gear up for potentially volatile energy needs during the colder months. The growing realization of energy security concerns has led countries to reassess their energy strategies and to look towards reliable gas suppliers, like Azerbaijan.
As energy demands shift and evolve, Azerbaijan has positioned itself as a crucial player in the energy landscape of Europe, especially in regard to natural gas. The discussions and meetings held during the COP29 conference underscored the strategic importance of Azerbaijani gas in light of the region’s energy security needs.Germany’s interest in Azerbaijan’s gas, especially amidst the backdrop of fluctuating prices and supply challenges from customary sources, signaled a willingness to explore new partnerships.
the increasing talks between Azerbaijani officials and German counterparts reveal a mutual recognition of the benefits of collaboration.Experts suggest that while direct gas imports from Azerbaijan to Germany remain a distant prospect, the potential for future contracts looms large, especially with Azerbaijan’s untapped gas fields. The significant reserves of natural gas,such as those in the Absheron-2 project,represent an possibility for both countries to establish a vital energy link.
In the larger context of energy transitions,while fossil fuels like oil and gas may face criticism in the narrative surrounding climate change,they also remain integral to current energy systems. This reality poses a challenge for policymakers who must balance immediate energy needs with long-term sustainability goals. Azerbaijan’s approach,as highlighted by President Aliyev and supported by OPEC’s leadership,emphasizes a dual focus on harnessing existing natural resources while exploring renewable energy projects.
The dynamics within the energy market are indeed complex. The increasing demand for Azerbaijani gas amid rising prices in Europe paints a picture of a market in transition. As seen with the price surge following the legal arbitration victory of OMV against Gazprom, market factors can have swift and widespread implications. the dialog around energy security, the role of natural gas, and the gradual shift toward green energy mutually influence the strategies employed by countries navigating this intricate landscape.
Ultimately, as the discussions at COP29 highlight, there’s a collective understanding that while the world aspires to a greener future, the immediate needs for reliable energy supply must be tactfully navigated. this necessitates collaboration, innovation, and a realistic approach to how countries manage their natural resources while stepping towards sustainability.