Search

Begin New Search Topic Energy Policy Political Geography Azerbaijan Content Type Journal Article Journal Baku Dialogues Publication Year within 10 Years Publication Year within 5 Years

1. The Strategic Benefits of the Southern Gas Corridor

Author:
Vitaliy Baylarbayov
Publication Date:
04-2021
Content Type:
Journal Article
Journal:
Baku Dialogues
Institution:
ADA University
Abstract:
At the end of 2020, the Southern Gas Corridor became fully operational. This marked the completion of a journey that began a decade ago when the government of Azerbaijan and the State Oil Company of the Azerbaijan Republic (SOCAR) took a strategic decision to launch a major natural gas export project. The Southern Gas Corridor is one of the largest and the most expen­sive gas supply projects in the world built to date. In December 2013, SOCAR and its partners signed a Final Investment Decision (FID) to establish a gas pipeline corridor from Azerbaijan through Georgia, Turkey, Greece, and Albania be­fore ending in Italy. A branch pipe­line is now under construction to Bulgaria, which is expected to be completed in the second half of 2021. In July 2018, the project supplied its first gas to the Turkish market and went on to change the dynamics of that country’s gas market, whereby Azerbaijan is now one of its top gas suppliers. On December 31st, 2020, inaugural commercial gas supplies arrived from the Caspian into Europe, signaling the commencement of the Southern Gas Corridor’s full operations. For Azerbaijan, the Southern Gas Corridor provides a major source of revenue unlinked to the global oil market; the project also strengthens Baku’s links with its neighbors and Europe. For SOCAR—as operator of components of the project and investor in all its segments—the project’s success represents a major step in the company’s transition from a national to an international energy company. The Southern Gas Corridor provides new gas supplies to Turkey, Georgia, and Europe and is a platform for in­creased supplies to these markets and also can be extended to reach additional markets in Europe. With the completion of the first stage of the Southern Gas Corridor, Azerbaijan and SOCAR, together with their partners, are examining strategies for the next phase of the corridor’s development.
Topic:
Energy Policy, International Trade and Finance, Natural Resources, and Gas
Political Geography:
Europe, Asia, and Azerbaijan

2. The Southern Gas Corridor and the New Geopolitics of Climate Change

Author:
Morena Skalamera
Publication Date:
04-2021
Content Type:
Journal Article
Journal:
Baku Dialogues
Institution:
ADA University
Abstract:
It has been argued that the U.S. shale revolution, the Trump Administration’s energy pol­icies, and the global shift towards low‑carbon energy sources and re­newables have contributed to shape a new energy order—one that chal­lenges the market power tradition­ally enjoyed by petro‑states. No­where are these developments more relevant than in Azerbaijan, as the country’s expensive investments in the Southern Gas Corridor come under increasing pressure. Unless Azerbaijani gas can be decarbon­ized at a competitive cost, it may risk becoming redundant within a couple of decades as Europe embraces a greener future. Geopolitics and Geo‑economics The Southern Gas Corridor (SGC) is a $45bn mega‑project ($25bn for the development of the Shah Deniz II field and at least $15bn for the delivery system) to supply natural gas from the Caspian Sea to Europe and, by so doing, reduce re­liance on Russian imports. This is a priority that has taken on urgency in the wake of Russia’s 2014 an­nexation of Crimea and the sharp deterioration in relations between Moscow and Brussels that ensued. Currently, the SGC is made up of two pipelines to deliver gas from Azerbaijan’s Shah Deniz II field to Turkey and Europe—one called TANAP that is already operational and runs the length of Turkey, and another known as TAP stretching from Turkey’s border with Greece across Albania to Italy, which started pumping gas in late 2020. This is how a leading ADA University policy expert described the situation to me in October 2020, in light of technical delays in the pipeline’s inauguration and the big changes in energy markets de­scribed above: “the TAP pipeline is 90 percent completed and will be inaugurated soon. Unlike oil pipe­lines, whose flexible delivery to the end‑consumer can be sorted out once they are built— as oil travels via tanker, rail, etc.— gas pipelines are more rigid invest­ment endeavors. [...] You don’t agree on a gas pipeline unless you have secured a buyer on the other end.” While natural gas supplies from Azerbaijan’s Shah Deniz field are already contracted, the project has seen numerus twists and turns since it was signed with great fan­fare at the end of 2013. The SGC is an expensive endeavor and the in­stitutions that lined up to finance it are a testament to the degree of strategic importance it carries for the EU. The project has, indeed, been designated as one of the EU’s “priority projects.”
Topic:
Climate Change, Energy Policy, Environment, Natural Resources, and Gas
Political Geography:
Europe, Asia, and Azerbaijan

3. Between Eurasia and the Middle East: Azerbaijan’s New Geopolitics

Author:
Svante Cornell
Publication Date:
09-2020
Content Type:
Journal Article
Journal:
Baku Dialogues
Institution:
ADA University
Abstract:
Azerbaijan’s geopolitics have changed considerably in the last decade, along with the growing general instability in its neighborhood. Gone are the days symbolized by the Baku-Tbilisi-Ceyhan pipeline’s construction, when a relatively stable balance existed between a loose Russian-led alignment including Iran and Armenia, and an informal entente between the United States and Turkey, which supported the independence of Azerbaijan and Georgia and the construction of direct energy transportation routes to Europe.
Topic:
Foreign Policy, Energy Policy, and Geopolitics
Political Geography:
Eurasia, Middle East, and Azerbaijan

Refine your search