SOCAR discusses South Caucasus Pipeline expansion

Azerbaijan is discussing an expansion of the South Caucasus Pipeline (SCP) to increase gas exports to Europe, but the project would require long-term purchase commitments and financing from European partners, SOCAR President Rovshan Najaf said on Monday.

Najaf said Azerbaijani gas exports now reach not only Europe, Georgia and Turkey but also Asian markets.

“We are ready to supply more gas and expand infrastructure, but we need commitments from our European partners in the form of long-term gas purchase agreements and financing,” he said during Baku Energy Week.

According to Najaf, key projects expected to boost Azerbaijan’s gas output include the Shah Deniz Compression project, the Babek field, the full-field development of Absheron and other upstream developments.

He also noted that first non-associated gas production has started at the Azeri-Chirag-Gunashli (ACG) field, which will add new volumes to the market.

Najaf said growing power demand from artificial intelligence and data centres could further increase global gas consumption.

SOCAR is also expanding its international upstream portfolio through investments including a 10% stake in Thailand-focused Valeura Energy and participation in the Sarb Lulu project in the United Arab Emirates.

N.Tebrizli