The 11th Ministerial Meeting of the Southern Gas Corridor Advisory Council and the 3rd Ministerial Meeting of the Green Energy Advisory Council took place in Baku, at the “Gulustan” Palace. The event was attended by the President of the Republic of Azerbaijan, Ilham Aliyev.
The gathering brought together representatives from 24 countries, including Azerbaijan and European Union member states, as well as 7 international financial institutions and 42 energy companies. Among the participants were ministers, deputy ministers, and other high-level officials.
In his remarks, President Ilham Aliyev emphasized that the Southern Gas Corridor Advisory Council is convening in Baku for the eleventh time:
“Initiated by Azerbaijan and supported by the European Commission, this important gathering has played a crucial role in shaping approaches to energy security, addressing key energy security issues, and coordinating our joint efforts.
Today, during our ‘family photo,’ I mentioned that we may need more space next time, because the team is growing. This is a very positive sign of our cooperation. As time goes on, more countries and companies are joining the process, united by a common goal.
First, to strengthen cooperation—because without cooperation, none of the energy security projects would be possible. And second, to ensure energy security for ourselves, our neighbors, and our partners.”
President Aliyev stressed that the spirit of collaboration among producers, transit countries, and consumers is a reflection of shared responsibility:
“The positive spirit of partnership and cooperation that brings us together clearly demonstrates this responsibility.
Of course, the balance of interests between the three main players—producers, transitors, and consumers—supported by international financial institutions, has turned our story, or rather, our stories, into success stories.
Countries, governments, investors, companies, and leading financial institutions — this is our team. And this team is growing.”
The President of Azerbaijan emphasized that today, more than ever before, energy security is an integral part of national security:
“I would also add that industrial security is now on the agenda. To develop industries, we need energy resources, petrochemicals, and fertilizers.
Azerbaijan is a producer and exporter of crude oil, natural gas, petroleum products, petrochemicals, and fertilizers.
Our national energy company SOCAR is engaged in upstream, midstream, and downstream activities, both domestically and internationally.”
He noted that Azerbaijan has long been and will remain a reliable energy partner:
“As high-level representatives of the European Commission have acknowledged, Azerbaijan is a reliable energy partner and a pan-European gas supplier. This is indeed the case.
The geography of our gas exports is expanding. Since our last meeting here in Baku, during the 10th Advisory Council, five more countries have become recipients of Azerbaijani natural gas.”
Today, Azerbaijan supplies natural gas to 12 countries — 10 of them in Europe, 8 of which are EU member states:
“And this geography will continue to grow. We are already involved in the creation and expansion of gas distribution networks in several European countries — some of which lack such infrastructure, and others in need of its modernization.
Azerbaijan, as an investor, is ready to contribute to this development. So, the geography of our gas supplies will expand — through interconnectors and other means.
At the same time, we must look at expanding the existing gas pipeline infrastructure.”
On the Southern Gas Corridor, President Aliyev said:
“The Southern Gas Corridor is a tremendous success story for all of us. The 3,500-kilometer integrated pipeline network is today a vital energy artery for many countries. It is operating at full capacity.
The South Caucasus Pipeline, TANAP, and TAP — the three elements of this corridor — are all fully utilized.
Therefore, expansion is necessary. And to achieve that, we will, of course, need financing.”
President Aliyev then highlighted a key concern:
“This brings us to an important issue we have raised several times — the decision by some international financial institutions to halt financing for fossil fuel-related projects.
In light of the profound geopolitical changes we are all witnessing, these institutions may need to reconsider their approach.
Without such financing, further investments in transport infrastructure and even upstream development will be significantly hindered.”
He underscored Azerbaijan’s experience in energy development:
“We have extensive experience combining corporate and borrowed financing, which allowed us to implement major upstream and transportation projects.
Azeri-Chirag-Gunashli (ACG), Shah Deniz, and Absheron are fields that today contribute to the energy security of many nations.
Several additional fields are expected to come online in the coming years — contracts have been signed and work programs approved.
The construction of key pipelines — including Baku-Tbilisi-Ceyhan and Baku-Supsa, as well as the Southern Gas Corridor — has all been the result of deep cooperation among all stakeholders.”
He added:
“When a policy to end financing for fossil fuel projects is implemented, it sends a message to investors, companies, and countries — and that message is not a positive one.
This is why I believe this topic will likely be discussed.”
Regarding Europe’s energy transition, President Aliyev said:
“We hope that despite Europe’s ambitious green agenda, fossil fuel producers — and fossil fuels themselves — will not be marginalized or treated unfairly.
This was exactly our message at COP29, which Azerbaijan had the honor to host: there should be no discrimination, no dividing lines between countries rich in fossil fuels and those without.
On the contrary, countries that possess fossil fuel resources and invest in renewables should be welcomed — not criticized.”
At the same time, the long-term contract process is also important. Because we all know that energy projects — oil and gas — require significant investment, and it takes many years to recover those investments. By the way, until today, what we as a country invested in the Southern Gas Corridor has still not been recovered. We have yet to reach the zero balance. Therefore, we must be confident that our gas will continue to be needed in Europe — our main market — for many years to come. Without that guarantee, investors will not invest, and countries will not invest either. As a result, there will be a major shortage of natural gas.
Our reserves are well known. We are expecting new production from new fields, first and foremost from the deep gas section of the Azeri-Chirag-Gunashli block. I believe we are in the final stage of reaching an agreement on the expansion of the Absheron field into Phase 2, which will add at least 3 BCM to the current 1.5 BCM.
All of this is possible, but as I mentioned, it requires two essential factors: physical transport infrastructure through interconnectors and the expansion of the Southern Gas Corridor, as well as reliable forecasting and dependable partnerships. Because in a true partnership, all sides must be reliable.
With respect to our green agenda, as I said earlier, we managed to combine these two important elements while meeting the needs of our consumers.
By the way, since the signing of the strategic partnership declaration between Azerbaijan and the European Commission in the energy sector, our gas exports to Europe have increased by nearly 60%. That declaration was signed by the President of the European Commission and myself in mid-2022. In 2021, our gas supply to Europe was about 8 BCM. Last year, it was nearly 13. That’s more than half of our total exports, which stand at 25 BCM and will continue to grow. So, this is already a substantial volume.
Considering our plans to bring new fields online and increase production at existing gas fields, we will definitely have more gas available for our consumers. If we also factor in our green agenda, which will save us a significant amount of natural gas currently used for domestic electricity generation, we can envision Azerbaijan playing an even greater role in energy security for our partners.
Today, we already have signed contracts with our investors for solar and wind power plants, which will allow us to generate 6 gigawatts of renewable energy by 2030. As I mentioned, this will save a substantial amount of natural gas that is now used to produce electricity domestically — and all of that gas will become available for export.
We are also expanding our hydro energy capacity through domestic investments in the territories liberated from Armenian occupation — East Zangezur and Karabakh. We have already installed 270 megawatts of hydropower capacity. More than 30 small hydropower plants are already operational, and within the next five years, another 30 will be built, increasing our total hydropower capacity to 500 megawatts.
Altogether, by 2030, our renewable energy capacity will reach 6.5 gigawatts. For comparison, Azerbaijan’s current installed capacity is slightly more than 8 gigawatts. So, we will nearly double our renewable energy production within the next five years.
Of course, I’m confident that today’s Green Energy Advisory Council session will also discuss the green energy cable from Azerbaijan to Europe. As far as I’ve been informed, the feasibility study for the project is in its final stage. Once it is complete, practical negotiations on financing will resume. We hope there will be no limitations on financing green energy projects.
I believe it is important to elevate these projects within European institutions to the level of Projects of Common Interest — because that is exactly what they are.
In conclusion, I would once again like to express my deep satisfaction with the results we have achieved through the active format of our cooperation.
Yes, we gather once a year in Baku, but throughout the year, numerous events, meetings, and conferences take place in both bilateral and multilateral formats. These activities ensure strong synergy. As always, at the Advisory Council, we review the progress made over the past year and plan our next steps. I wish both Councils continued success.
