Shahbazov says energy security remains a key element of global stability

Energy security remains a core part of national security, and the world is facing what could be the biggest disruption to oil supplies, affecting more than 10% of daily global crude and oil products flows, Azerbaijan’s Energy Minister Parviz Shahbazov said on Friday.

Speaking at a ministerial panel titled “Redrawing the Global Energy Map: Security and Uncertainty,” Shahbazov said around 90% of global oil and LNG supplies shipped through the Strait of Hormuz are directed to Asian markets, while 40% of the European Union’s jet fuel and diesel imports move through that route.

He said sharp increases in oil and gas prices affect not only consumers but the global economy as a whole, adding that balanced prices are important for producer countries, consumer countries and the oil and gas industry.

Shahbazov said Azerbaijan has for many years contributed to global energy security by diversifying oil and gas supply routes. He said the country currently exports oil to 20 countries in Europe and Asia, with average daily oil exports of 436,000 barrels, while its gas supply geography has expanded to 16 countries in a short period.

He added that the Southern Gas Corridor, implemented jointly with Turkey, currently transports more than 16 billion cubic metres of gas per year but has twice that transmission potential. He said that in some cases, particularly amid the European Union’s green policies, insufficient investment had been allocated to fully realise that potential.

Shahbazov said Azerbaijan plans to build up to 8 gigawatts of renewable energy capacity. Of that amount, 2 gigawatts are to be integrated into the domestic energy system by 2027, while the rest will be developed in stages for export.

He said Azerbaijan is strengthening energy links with Europe through Turkey and, together with Kazakhstan and Uzbekistan, is implementing electricity interconnector projects between Asia and Europe. According to him, these projects will connect production and consumption centres and increase energy security and supply accessibility.

Addressing the energy transition, Shahbazov said more than 80% of the global economy still depends on conventional energy sources. He added that although global renewable energy capacity rose 15.5% last year, demand for hydrocarbons has not been fully replaced.

For that reason, he said, the energy transition should be seen not as “replacement” but rather as a process of “addition and optimisation” that must be managed wisely. He warned that rushed and insufficiently justified decisions on the energy transition could reduce investment in the hydrocarbon sector and, as a result, create risks for energy security.

The panel also featured Turkish Energy Minister Alparslan Bayraktar, Slovenian Minister of Environment, Climate and Energy Bojan Kumer, and International Renewable Energy Agency Director-General Francesco La Camera.

N.Tebrizli