Azerbaijan urges EU to sign long-term contracts to boost gas supplies

Azerbaijan is ready to increase its natural gas supplies to Europe but requires long-term contracts and investment risk mitigation, Deputy Energy Minister Kamal Abbasov said.

"If the European Union needs additional gas from Azerbaijan, long-term contracts, support for reducing investment risks, or financing for additional gas production are necessary," Abbasov said.

Earlier, Vitaly Beglyarbekov, a representative of Azerbaijan’s state oil company SOCAR, said that a final investment decision (FID) on the second phase of development of the Absheron gas condensate field is expected in 2025. Production from the second phase is planned to start in late 2028 or early 2029.

"This project will add at least 4.5 billion cubic meters of gas per year to Azerbaijan’s production," Beglyarbekov said, adding that the timeline coincides with the launch of a new $2.9 billion compression platform at the Shah Deniz field, which will cumulatively add up to 50 billion cubic meters of gas over its operational life.

Gas production from Absheron’s first phase began in July 2023, and Shah Deniz has been producing since December 2006.

N.Tebrizli