BAKU

Azerbaijan and the Czech Republic agreed to expand cooperation in the energy sphere as one of the priority sectors of mutual economic ties between the two countries.

The agreement was signed by Azerbaijan’s Energy Minister Parviz Shahbazov and Czech Ambassador to Azerbaijan Milan Eckert.

The document provides for the expansion of bilateral cooperation in the field of oil and gas, petrochemistry, renewable energy sources, including bioenergy, and also includes the establishment of links between relevant economic entities in accordance with the national legislation of the two countries.

“The document also expresses support for the implementation of joint energy projects in third countries and covers such issues as the development of cooperation in the field of energy efficiency and energy saving in the residential sector and at large energy-intensive enterprises, the exchange of information and experience, trainings, joint seminars, conferences and forums. In accordance with the agreement, it is planned to create a joint working group on energy cooperation,” the Energy Ministry said.

Azerbaijan’s energy minister said that the expansion of the Southern Gas Corridor would open up opportunities for cooperation in the field of low-carbon gas.

Azerbaijan started supplying commercial natural gas to Europe from the second stage of the Shah Deniz project via its $40-billion Southern Gas Corridor in December 2020, when the corridor’s last part, the Trans-Adriatic Pipeline (TAP), became operational. Europe,  is a highly lucrative new market for Azerbaijan, as the continent is seeking to diversify its supply away from Russia, on which it still depends for 34 percent of its gas.

Azerbaijan’s goal is to eventually supply the European market with 10 billion cubic metres (bcm) of gas a year, including 8 bcm to Italy and a combined 2 bcm to Greece and Bulgaria. This year, the country plans to export 5 bcm to Europe and over 12 bcm to Turkey.

Shahbazov has invited Czech companies to take part in auctions for the creation of renewable energy facilities in Azerbaijan with a total capacity of 700 megawatts.