The global energy crisis that is so apparent in the West is now becoming that much more visible in the East. Kazakhstan, one of the leading crude oil and gas suppliers in Asia, has announced that it intends to gradually decrease its natural gas flows to China, citing domestic consumption rising at what could become a crisis-inducing rate.
In June, Kazakh President Kassym-Jomart Tokayev ordered the government to cut gas exports and ensure that an additional 2bn cubic metres (bcm) of gas were available to consumers inside Kazakhstan. Tokayev said meeting domestic demand for gas must be held as an absolute priority over exports, with the gas to be sourced from the Tengiz field developed by a consortium led by US energy giant Chevron. Continue reading →
With the deepening energy crisis in the West triggered by Russia’s intervention in Ukraine, more European countries, mainly Eastern European and Balkan countries, including Bulgaria and Serbia, are eyeing alternative suppliers for additional natural gas volumes. The security cataclysms in Europe in the light of the war have pushed European countries to seek partners such as Azerbaijan.
Since 2022, Azerbaijan has held several high-level meetings with EU officials regarding exporting additional gas volumes to Europe. It is noteworthy that non-EU countries like Serbia are also keen on deepening energy partnerships with Azerbaijan. Serbia’s willingness to acquire more Azeri gas depends on the construction progress of the EU-supported Serbia-Bulgaria gas interconnector – a 171 km natural gas interconnector that will connect Nis (Serbia) and Sofia (Bulgaria), thus supporting regional energy security. According to reports, the interconnector may become operational in early 2023, giving Serbia and Bulgaria a non-Russian gas supply option. Obviously, Serbia is heavily dependent on Russian oil and gas, which have been disrupted following the Ukraine war and the imposition of sanctions on Moscow by the European Union, which Serbia is seeking to join. Continue reading →
The war in Ukraine has exacerbated Europe’s energy crisis, leaving the European Union desperately seeking alternative sources of supply to reduce its dependence on Russian fossil fuels. Among the states in the Middle East, North Africa and Central Asia the EU has turned to in efforts to diversify its energy supplies, Algeria has been identified as a promising source of additional supplies of natural gas. But diplomatic obstacles and production limitations, as well as Algiers’ commercial links to Moscow, mean that expectations management are in order when it comes to Algeria being a cure for Europe’s energy woes.
Among the other countries that have been identified as potential alternative suppliers, including Qatar and Libya, most would not able to replace Russian natural gas exports to Europe anytime soon due to technical obstacles. Germany is in talks with Qatar for additional liquefied natural gas, or LNG, exports, but those discussions have reportedly hit a snag. Azerbaijan has also agreed to increase deliveries through available pipelines linking its fields to European markets, but there are limits to the amount of extra production it can divert. Continue reading →
The prospect of Israel and Tukey normalizing relations paves the way for profitable cooperation in a wide array of fields, including energy. Israeli President Isaac Herzog’s visit to Turkey in March instantly renewed the discussions regarding the Turkey-Israel gas pipeline project amid a colossal security cataclysm in Europe stemming from Russia’s invasion of Ukraine. While Europe is facing unprecedented energy security challenges and desperately looking for alternative and reliable suppliers, the countries are looking to the Turkey-Israeli gas pipeline as Europe’s alternative to Russian energy supplies.
President Recep Tayyip Erdogan’s earlier statement that “gas cooperation is one of the most important steps we [Turkey and Israel] can take together for bilateral ties” should not come as a surprise. Erdogan also said “he was ready to send top ministers to Israel to revive the pipeline idea that has hung in the air for years.” Continue reading →
Photo credit: CNBC News
The current crisis between Russia and Ukraine has put the United States and its European allies on high alert over the possibility of the first major interstate military conflict in Europe since World War II. Although efforts to find a diplomatic resolution to the crisis continue, the room for a mutually acceptable outcome has narrowed now that the U.S. and NATO have rejected Russia’s demands that no additional NATO troops be deployed to Eastern Europe, while continuing to provide arms and other aid to Ukraine.
Apart from the concerns the crisis has raised over European security and Russian revanchism, Europe is also particularly alarmed about the potential for major disruptions in its energy market, which is highly dependent on Russian oil and gas. Indeed, a military invasion of Ukraine could create an energy catastrophe in Europe if it results in Russian gas exports being cut entirely. The diplomatic fallout from an invasion could also trigger the cancellation of current energy projects within the European Union, such as the Nord Stream-2 pipeline to Germany, which would have long-term implications for European energy supplies. Continue reading →
Trans-Caspian Pipeline (Photo-Credit: IENE)
On November 10, the second war in Nagorno-Karabakh ended with a Russia-brokered ceasefire agreement signed between Azerbaijan and Armenia. While the 44-day war caused severe damages to frontline settlements and civilian casualties on both sides, frequent missile attacks carried out by Armenia towards Azerbaijani cities and infrastructure beyond the frontline raised concerns not only in Baku but also in the EU regarding the security of vitally important energy infrastructure. The possibility of damages to energy infrastructure, particularly the Baku-Tbilisi-Ceyhan oil pipeline and the Trans-Anatolian Pipeline, would explicitly put the role of these pipelines in European energy security under question.
BACKGROUND: The Tovuz/Tavush incidents on the border between Armenia and Azerbaijan in July 2020 became a prelude to the second war between Baku and Yerevan in the Nagorno-Karabakh region. On September 27, 2020, fighting escalated beyond the established “meeting point” (Line of Contact) with the involvement of a significant number of military personnel, artillery units, and long-range missiles, threatening the geopolitical stability in the Black Sea-Caspian region. Continue reading →
Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Nursultan Nazarbayev, President of Kazakhstan in Astana during an official state visit in July 2018 /AFP
With vast energy sources and favorable geography, Central Asia has been subject to intense rivalries between Russia, China, Iran, Turkey, and the Gulf monarchies, among others, for influence.
The energy sector has become the key prize, with natural gas being of greatest importance. Increasingly, gas is a major source of exports for the region. Central Asia accounts for about 4 percent of global energy deposits. The oil reserves in Central Asia and along the Caspian Sea coast amount to 17 to 33 bbl/d, which are comparable to that of Qatar The Gulf monarchies have been particularly active in this area in recent years, signing several memoranda and partnerships in the region. The energy giant UAE heavily invests in energy sector of the Central Asian countries to increase its own footprint in the region, bring additional investments to fragile economies, and help them to move away from the energy-based economy. Also, the UAE’s growing investments in the region give additional leverage to Dubai-based private companies operating in these countries. Continue reading →