Price of Azerbaijani gas sold to Europe announced

From January 1 to December 5, 2021, 7.9 billion cubic meters of natural gas was transported from Azerbaijan to Europe via the Southern Gas Corridor, Report informs, citing the EU’s European Network of Transmission System Operators for Gas (ENTSOG).

Thus, the daily volume of natural gas transported from Azerbaijan to Europe is 29.7 million cubic meters. By the end of the year, the volume of gas to be transported through the Southern Gas Corridor may reach 8.6 billion cubic meters. In 2021, the volume of gas to be transported to Europe alone may reach 5 billion cubic meters, which exceeds the planned volumes.

The operator of the Trans-Adriatic Pipeline (TAP), which transports Azerbaijani natural gas to Europe and is an integral part of the Southern Gas Corridor, said that the non-contractual base price for Azerbaijani gas transported to Europe on December 6-7 this year was $1,163 per 1,000 cubic meters.

The purpose of the Southern Gas Corridor is to ensure the export of natural gas primarily to Turkey and Southern Europe via the expanded South Caucasus Gas Pipeline, TANAP, and TAP from the development of the second phase of the Shah Deniz gas condensate field.

The Shah Deniz Phase 2 project is a huge project that will deliver Azerbaijani gas to Europe and Turkey, increasing energy security by supplying gas to European markets through the Southern Gas Corridor.

The 878-kilometre-long pipeline connects the Turkish-Greek border with the Trans-Anatolian Pipeline in Kipoi, crosses Greece, Albania, and the Adriatic Sea, and reaches the southern coast of Italy.

TAP can stimulate gas supplies to Southeast European countries through interconnectors to be built in the future. For example, Bulgaria will be able to strengthen supply security by meeting 33% of its natural gas needs through TAP. This, in turn, will increase the penetration of natural gas in the country. TAP outlets in Greece and Albania, as well as in Italy, also open up opportunities for transporting Azerbaijani gas to other European countries.