Category: Oil / Natural Gas / Green Energy

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Azerbaijani Politics Iran in Caucasus and Beyond MENA in Turbulence Oil / Natural Gas / Green Energy South Caucasus Region

Azerbaijan redraws its foreign policy map

Aliyev invites interim Syrian President al-Sharaa to visit AzerbaijanIn the last five years, Azerbaijan has explicitly shifted its traditional foreign policy strategy by making inroads into regions far beyond the post-Soviet space, including the Balkans, Middle East, and more recently Sub-Saharan Africa, often through energy projects led by its well-known State Oil Company (SOCAR).

A revelation about the extent of Azerbaijan’s regional diplomatic outreach came during the annual conference in ADA University in Baku on April 9, when Azerbaijani President Ilham Aliyev commented on numerous issues regarding the geopolitical landscape, including on Azerbaijan’s stance toward the ongoing Israel-Turkey standoff. Commenting on the confrontation between two friendly nations — both Israel and Turkey are strategic allies of Baku — Aliyev for the first time revealed that Baku once successfully mediated the Israel-Turkey reconciliation in 2022, resulting in a re-opening of embassies after several years, even though shortly after the breakout of the Gaza War relations were repeatedly put on hold.

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Central Asia I China I Russia Oil / Natural Gas / Green Energy

Türkiye-Turkmenistan Gas Deal Opens Possibilities for New Routes

Turkey Imports Gas From Turkmenistan Via Iran Under Barter Deal – Eurasia Review

Executive Summary:

  • In mid-February, Türkiye and Turkmenistan signed an agreement facilitating the flow of natural gas through Iran, a step to enhance Türkiye’s energy security and diversify its supply.
  • Iran’s infrastructure technical issues and the increased likelihood of U.S. sanctions could cause supply disruptions, as has occurred in the past.
  • Türkiye aims to establish itself as a key energy trade hub and create additional export routes, while Turkmenistan can export more gas through new routes, particularly to Europe.

On February 14, Türkiye’s Energy Minister, Alparaslan Bayraktar, announced that a new energy agreement was signed with Turkmenistan, strengthening the bilateral relations between Ankara and Ashgabat. The main stakeholders of the agreement are Türkiye’s state-owned pipeline operator BOTAŞ and Turkmenistan’s state-owned Turkmengaz. The new agreement envisages 2 billion cubic meters (bcm) of natural gas flow from Turkmenistan to Türkiye through Iran via its existing natural gas network, which began on March 1 (Caspian Post, February 14; Anadolu Ajansı, March 2). The new swap agreement is a remarkable milestone in enhancing Türkiye’s energy security and attempts to diversify its supply sources.

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Azerbaijani Politics Oil / Natural Gas / Green Energy South Caucasus Region

Azerbaijan’s Deepening Energy Ties With Israel

Azerbaijan has boosted ties with Israel despite Israel’s harsh prosecution of the Gaza war since the Hamas attack of October 7, 2023

Azerbaijan and Israel, which have long cultivated close ties in defense and intelligence, are strengthening cooperation in the energy field.

Last October, Azerbaijan’s State Oil Company (SOCAR) acquired a 10 percent stake in Israel’s Tamar gas field as part of the company’s Mediterranean upstream strategy. The investment, SOCAR’s first direct upstream venture in the Mediterranean, signals Azerbaijan’s intent to deepen its economic and geopolitical footprint in the Middle East while reinforcing its strategic alliance with Israel. SOCAR’s expansion into the Mediterranean basin intensifies Azerbaijan’s soft power and opens the prospect of additional gas exports to southeastern Europe. SOCAR reportedly bought the stake from Union Energy, which is operated by Chevron.

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Oil / Natural Gas / Green Energy

Turkey’s investment flows boost Romania’s solar power potential

Turkey’s investment flows boost Romania’s solar power potential

Turkey has emerged as a relatively new, strong actor in Romania’s renewable energy sector through recent investments and joint ventures. Turkey’s interest in Romania’s energy field is driven not only by economic interests and soft power diplomacy but also by the strong demand for additional energy sources.

Turkey’s growing investments in Romania reflect its broader geopolitical interests. Since 2023, Turkish investors have entered the market through acquisitions, joint ventures and new solar projects and began carrying out projects in the same year.

This also reflects the recent strong growth of Romania’s renewables sector. Romania closed 2024 with 5 GW of installed photovoltaic capacity, a significant increase compared to the 3.2 GW recorded in 2023. Undoubtedly, ongoing global and regional upheavals, particularly the Russo-Ukraine war and climate change, pushed Romania to focus more on its national green strategy.

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Azerbaijani Politics Oil / Natural Gas / Green Energy

Ukraine eyes key role in Azerbaijani gas transit to Europe

COMMENT: Ukraine eyes key role in Azerbaijani gas transit to Europe

Ukraine is positioning itself as a key transit hub for Azerbaijani gas to Europe, a move that could significantly alter the region’s energy landscape.

If successful, this would carve out a new role for Kyiv after Russian supplies stopped flowing to the rest of Europe via Ukraine on January 1, pushing up European wholesale energy prices.

The expiration of the Russian gas deal at the beginning of 2025 and Kyiv’s decision not to prolong the agreement triggered heated debates within the European Union as countries like Hungary and Slovakia harshly criticised Ukraine, accusing it of igniting the energy crisis with no drastic impact on Russia.

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Azerbaijani Politics Oil / Natural Gas / Green Energy South Caucasus Region Turkey-Azerbaijan Partnership

Azerbaijan’s SOCAR Invests in Türkiye’s Energy Sector

SOCAR Turkey expects rise in EBITDA to $1 bln in 2021 – The Tribune
Publication: Eurasia Daily Monitor Volume: 22 Issue: 6

Executive Summary:

  • On January 6, the State Oil Company of the Republic of Azerbaijan (SOCAR) announced plans to invest in Türkiye’s energy sector. This move would strengthen bilateral ties and allow Baku to expand its influence in Europe and the Middle East.
  • SOCAR is critical in meeting Türkiye’s growing natural gas demand while advancing eco-friendly initiatives such as sustainable aviation fuel production, aligning with Azerbaijan’s green energy strategies.
  • Azerbaijan’s soft power is fueled by SOCAR through investments and diplomatic engagement, including potential energy supplies to Syria. This reflects Baku’s multivector foreign policy amid shifting Middle East geopolitics.

On January 6, the State Oil Company of the Republic of Azerbaijan (SOCAR) announced plans to invest $7 billion in Türkiye’s energy sector in the coming years (Report.az, January 6). Between 2008 and 2024, SOCAR Türkiye, SOCAR’s local subsidiary, invested $2 billion into the development of the petrochemical facilities of the Petkim petrochemical company privatized by SOCAR. The total investments of the company in the Turkish economy accounted for more than $18 billion in the same period, making the company the largest foreign investor in the country (ABC.az, January 6).

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Oil / Natural Gas / Green Energy

European countries plan hydrogen import infrastructure to achieve climate goals

Hydrogen exports to shift to ammonia production by 2035

In light of global warming, resource extinction, natural disasters, and frequent heated debates on climate action in the West, hydrogen is the hope for achieving ambitious climate goals. Whether used in fuel cells to power vehicles, as a feedstock in industrial processes, or as an energy carrier to store and transport renewable energy, hydrogen offers solutions to decarbonise hard-to-abate sectors.

Indeed, hydrogen as an energy carrier has properties that are important for a reliable energy system, such as easy transport and storage capability. Moreover, hydrogen can replace fossil fuels to drastically reduce emissions in industries such as steelmaking and chemicals, where electrification is difficult.

Consequently, given hydrogen’s huge potential for energy transition, many European countries are keen on exploring ways of importing it.

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Azerbaijani Politics Oil / Natural Gas / Green Energy

Will COP29 become a milestone in Azerbaijan’s long-term energy strategy?

COP29 çərçivəsində “SOCAR Green” və “PowerChina” şirkətləri arasında Anlaşma Memorandumu imzalanıb | Şərq qapısı

Despite its heavy reliance on fossil fuel exports for many years, Azerbaijan has now shifted its long-term energy strategy by steadily switching to renewable energy sources.

Thus, the 29th Conference of the Parties to the UN Framework Convention on Climate Change (COP29) in Baku became a vital platform for Azerbaijan’s main energy giant SOCAR and its affiliate SOCAR Green LLC (established in December 2023) to ink new agreements with countries and companies in the field of green energy, smart technologies and decarbonisation.

Focus on gas

It is noteworthy that SOCAR started supplying North Macedonia with natural gas on November 15, while Azerbaijan was hosting the major climate event on its soil. Considering that natural gas is the cleanest fossil fuel, in contrast to crude oil, Baku did not hesitate to announce the new partnership during COP29.

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Oil / Natural Gas / Green Energy

Will the renewal of the Serbia-Russia gas deal prolong Moscow’s energy dominance in Europe?

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Serbian Deputy Prime Minister Aleksandr Vulin hinted during the Eastern Economic Forum in Russian Vladivostok in September that Moscow and Belgrade need to solve issues related to the gas supply contract set to expire in 2025. Despite Western sanctions, Russia still plays a crucial role in supplying Serbia with natural gas “on time and based on very good conditions”, the Serbian minister said.

Although the continuing Russian gas supplies to Europe pose a serious dilemma within the region, some EU member countries like Hungary, Slovakia, Austria, and non-members like Serbia do not hesitate to maintain energy partnerships with Moscow.

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MENA in Turbulence Oil / Natural Gas / Green Energy

Risky Business: Saudi Arabia’s Oil Price Hike and Market Reaction

As the world’s leading energy exporter, Saudi Arabia’s decision to raise the price of oil for its Asian customers, namely China and India, is a significant development. The surprise move, announced ahead of the much-anticipated OPEC+ meeting on June 2, saw Saudi Aramco increase the price of Arab Light crude for Asia customers by over 300 percent—from $0.90 to $2.90 per barrel above the Oman-Dubai benchmark. Saudi officials cited strengthening oil benchmarks, particularly the price of Dubai-Oman crude, to justify the price hike. However, a more likely underlying motive would be Saudi Arabia’s desire to maintain high oil prices in the face of the ongoing war on Gaza and the potential for further destabilization across the Middle East, which pose a serious threat to global oil markets and the country’s economy—although the attempt to secure its own economic well-being will certainly buy it no friends to the east.

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