The European Union and the Azerbaijani government have agreed to expand the Southern Gas Corridor. At a joint press conference, the European Union expressed its desire to receive more gas from Azerbaijan, and Azerbaijan said it would provide these volumes.

Following the eighth ministerial meeting of the Southern Gas Corridor Consultative Council in Baku on February 4, Azerbaijani Energy Minister Parviz Shahbazov and EU Commissioner for Energy Kadri Simson said in a joint press release that Azerbaijan and the European Union are strategic energy partners.

"The eighth ministerial meeting of the Southern Gas Corridor Consultative Council, held in Baku on February 4, 2022, reaffirmed the strategic energy partnership between Azerbaijan and the European Union on the basis of common goals for long-term energy security, security of supply and transition to green energy."

The document praises the successful results of the first full-year operation of the Southern Gas Corridor, as well as its contribution to ensuring reliable competitiveness and profitable energy supply from Azerbaijan to the Georgian, Turkish and European markets.

"This transmission system, which covers six countries, contributes to the diversification of energy supplies and sources, including regions that previously did not have access to natural gas, and accelerates the process of decommissioning coal in those regions."

The statement also said that the Azerbaijani government continues its efforts to play a strategic role as one of the main initiators of the Southern Gas Corridor, as well as to provide Europe with a safe, stable, and profitable energy supply.

The parties reiterated the need to diversify supplies due to the recent rise in global gas prices.

"We appreciate the efforts of all stakeholders to explore the possibility of expanding the Southern Gas Corridor to new energy markets, including the Western Balkans. As a next step, it is important to assess all commercial, environmental, technical, regulatory, and climatic issues that may arise during the realization of opportunities for future expansion of the Southern Gas Corridor. The shareholders of the Southern Gas Corridor project have signed several climate and sustainable development initiatives, including the Methane Guidelines. The further operation of the Southern Gas Corridor will gradually be based on the application of the best practices of the parties and the industry in the field of sustainable development in accordance with the relevant regulatory frameworks,” the document reads.

According to the Azerbaijani Energy Ministry, the meeting was attended by European Commissioner for Energy Kadri Simson, EU Commissioner for Neighbourhood Policy and Enlargement Oliver Varhely, as well as the high-level representatives from United States, United Kingdom, Turkey, Georgia, Italy, Greece, Bulgaria, Albania, Croatia, Hungary, Montenegro, Romania, Serbia, Northern Macedonia, Moldova, Bosnia and Herzegovina, Ukraine, and Turkmenistan attended.

Moreover, representatives from BP, BOTAS, TPAO, TANAP, TAP, SNAM, Fluxys, ICGB, Romgaz, SACE, SGC, Enagas, Uniper, TotalEnergies, Equinor, Lukoil, the World Bank, the Asian Development Bank, the European Bank for Reconstruction and Development, the European Investment Bank, and other institutions attended the event. Representatives of ACWA Power of the Kingdom of Saudi Arabia and Masdar of the United Arab Emirates also attended the meeting.

The first meeting of the Ministers within the Southern Gas Corridor Consultative Council was held on February 12, 2015.

This year's meeting comes at a time of gas crisis in Europe. EU High Representative for Foreign Affairs and Security Policy Josep Borrell said that if Russia suspends gas supplies to Europe, EU countries will hold talks with Azerbaijan on gas supplies.

The head of the Oil Research Centre, Ilham Shaban, told that a total of 552 billion cubic meters of gas was consumed in Europe in 2021.

"In 2021, Azerbaijan sold 8 billion 150 million cubic meters of gas on the European market. Azerbaijan will increase its volume to 10 billion cubic meters this year. According to this ratio, it is possible to distinguish how much Azerbaijani gas is in the general consumption of Europe. However, Russia sells about 175-180 billion cubic meters of gas in Europe as a whole," he stated.

Shaban believes that the realisation of the Trans-Caspian Gas Pipeline in the short term is impossible.

"Nevertheless, in the next few years, Azerbaijan will be able to supply Turkmen gas to the European market through the Southern Gas Corridor. This can be a swap, i.e., Turkmen gas obtained through Iran by exchange. Also, in the development of the Friendship Oil and Gas Field between Azerbaijan and Turkmenistan, a certain part will be legally Turkmen gas,” Ilham Shaban added.