The European Union (EU) on Monday signed a strategic energy partnership with Azerbaijan to double natural gas imports from the South Caucasus country by 2027, as part of a continued push to reduce Europe’s energy dependency on Russia. The deal was inked following a meeting between European Commission President Ursula von der Leyen and Azerbaijani leader Ilham Aliyev.
The deal states that Baku will increase its gas exports from 8 billion cubic metres per year to 20 billion cubic metres by 2027 via the Southern Gas Corridor (SGC). The SGC is part of a network of pipelines connecting Georgia, Azerbaijan, Turkey, Greece, Albania, and Italy.
President of #Azerbaijan Ilham Aliyev and EU Commission President @vonderleyen sign an MOU, envisaging the increase of natural gas deliveries from Azerbaijan to Europe from current 8 billion cm to 20 billion cm pic.twitter.com/PFUADu97aI
— Nasimi Aghayev (@NasimiAghayev) July 18, 2022
The deal also mentions that the EU will significantly invest in “the expansion of the SGC pipeline network” to ensure it can deliver the target amount. Both sides also agreed to expand cooperation in renewable energy and implement sustainable energy policies.
Von der Leyen called the deal a “new chapter” in the EU’s energy cooperation with Azerbaijan, “a key partner in our efforts to move away from Russian fossil fuels.” “From next year on, we [Europe] should already reach 12 billion cubic metres. This will help compensate for cuts in supplies of Russian gas and contribute significantly to Europe’s security of supply,” she said during a joint press conference with Aliyev.
Azerbaijan is a reliable provider of natural gas to Europe. EU Commission President @vonderleyen has just announced from Baku that #Azerbaijan and EU will sign today a new agreement doubling gas deliveries from Azerbaijan pic.twitter.com/y3EwhKI2iT
— Nasimi Aghayev (@NasimiAghayev) July 18, 2022
Noting that Baku has “tremendous potential in renewable energy,” Von der Leyen said Azerbaijan is on the path to becoming “a very reliable and prominent renewable energy partner” to the EU.
EU Energy Commissioner Kadri Simson, who accompanied Von der Leyen on her trip, said the deal “underlines the strategic role of the SGC in our diversification efforts.” A release by the EU states that the agreement is “climate friendly” and “supports the creation of schemes to collect natural gas that would otherwise be vented, flared or released into the atmosphere.”
Which countries reduced energy imports from Russia by the most since the invasion of Ukraine?
— Naomi O'Leary (@NaomiOhReally) July 5, 2022
The US, Sweden, Lithuania, Egypt, Spain and Finland are the top six.https://t.co/X18NJU9wmZ pic.twitter.com/wCjeiWLpGg
Calling the deal a “big asset” for Azerbaijan, President Aliyev stressed that both sides plan on expanding energy ties and have already begun talks covering many areas, including oil, gas, renewables, hydrogen, and energy efficiency. Aliyev also called on the EU to help Baku improve the region’s connectivity by building more infrastructure like ports and railroads.
In 2021, the EU imported 40% of its gas from Russia. However, since Russia began its military invasion of Ukraine, the EU has been looking to diversify its gas suppliers. Brussels has imposed heavy sanctions on Moscow to punish it for human rights abuses and strain its economy so it may be compelled to end the war. In fact, the EU recently agreed on a sixth package of sanctions that bans 75% of Russian oil imports and sets a 90% target for the end of the year.
The largest importers of fossil fuels from Russia in the first 100 days of the invasion, per commodity.https://t.co/X18NJU9wmZ pic.twitter.com/FtXCK7xXiv
— Naomi O'Leary (@NaomiOhReally) July 5, 2022
To this end, on Monday, France signed an energy deal with the United Arab Emirates to increase Abu Dhabi’s energy supply to Paris. Similarly, Italy signed a $4 billion energy deal with Algeria, which has now replaced Russia as Italy’s largest energy supplier. Likewise, the EU inked an agreement with Egypt and Israel last month to transport Israeli natural gas to Europe via Egypt.
The succession of deals comes as Russia threatens to cut off gas supplies to Europe. In fact, Russia has already cut supplies to Poland, Bulgaria, Finland, Denmark, and the Netherlands to retaliate against sanctions. Moreover, Moscow reduced the capacity of the Nord Stream 1 pipeline, which directly connects Russia with Europe, by 60% in June.