BAKU, Azerbaijan, August 1. Azerbaijan is
clearly a dependable provider of gasoline to the EU, Julian Bowden, Senior
Visiting Research Fellow at Oxford Institute for Energy Studies
(OIES) informed Trend.
“The Southern Gas Corridor is working nicely: it’s delivering gasoline
into southern Europe & Italy, and serving to these EU nations
(Greece, Bulgaria and Italy) enhance their variety of provide,” he
stated.
Talking in regards to the lately signed memorandum of understanding
between the European Commission and Azerbaijan, Bowden famous that
the MOU refers to doubling the capability of the SGC.
“Where is that this provide to return from? If it’s Azerbaijan, then we
wanted to see the upstream commitments yesterday. Filling this new
SGC capability by 2027 seems very laborious whether it is to be solely
Azerbaijani gasoline. That leaves Turkmenistan gasoline, delivered both by
swap from Iran, or from a Trans Caspian pipeline,” he added.
Bowden believes that if we are able to’t see the provision a part of this
chain being labored very quickly, then it won’t be potential to assist
Europe overcome the present gasoline provide disaster.
The analyst identified that general, the MOU is aspirational,
and the problem now may be very shortly transferring the MOU into one thing
extra tangible. “There is still a lot of work to be done.”
On July 18, 2022, a “Memorandum of Understanding on Strategic
Partnership within the area of vitality between the European Union
represented by the European Commission and the Republic of
Azerbaijan” was signed between Azerbaijan and the European
Union.
The Sides agreed to help bilateral commerce of pure gasoline,
together with via exports to the European Union, through the Southern
Gas Corridor, of at the least 20 billion cubic meters of gasoline yearly
by 2027, in accordance with industrial viability and market
demand.
According to the doc, any additional exports of pure gasoline to
the European Union past these which might be being delivered thus far
would require vital investments within the growth of the
Southern Gas Corridor pipeline community and the upstream mission
growth.
Moreover, the EU and Azerbaijan will encourage financing of the
growth of the Southern Gas Corridor pipeline community taking into
consideration the EU’s local weather insurance policies and its REPowerEU technique,
together with via cooperation with worldwide monetary
establishments.
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