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Tuesday January 31 2023

State Dept.: US companies could bring capital to Azerbaijan’s renewable energy if it creates attractive investment environment

10 March 2020 11:33 (UTC+04:00)
State Dept.: US companies could bring capital to Azerbaijan’s renewable energy if it creates attractive investment environment

By Trend

American companies could bring the capital and expertise if Azerbaijan develops an attractive investment environment in this sector, Nathan Reich, Energy Diplomacy Officer, Bureau of Energy Resources, US Department of State, told Trend.

He noted that the governments of the United States and Azerbaijan have a close relationship.

"We have successfully worked together on a range of important political, economic, security, social, and humanitarian issues for nearly thirty years, and I expect we will continue to do so for many years to come. On the energy front, I would stress two areas. First, there’s the continued development of the Caspian’s oil and gas production potential. With the Baku-Tbilisi-Ceyhan pipeline and the nearly completed Southern Gas Corridor, Azerbaijan and its neighbors have greater access to Europe and the world’s energy markets," said the energy diplomacy officer.

Reich pointed out that top-tier international oil and gas companies continue to explore and develop new fields in Azerbaijan’s portion of the Caspian Sea because the country continues to offer an attractive investment environment.

"That is a reputation Azerbaijan has built over decades, and so long as it maintains one, foreign investment will continue to arrive. The US government supports this and views it as a natural response to Azerbaijan’s commitment to best practices in the oil and gas sector," he added.

Reich said the US would also like to see Azerbaijan’s Caspian neighbor, Turkmenistan, take advantage of these export routes.

"Turkmenistan has plentiful offshore condensate and natural gas reserves. Companies would like to develop and export them. Azerbaijan, Georgia, Turkey, and perhaps Europe could consume the natural gas and the Baku-Tbilisi-Ceyhan pipeline could be used to export the condensate to global markets. The arrangement would diversify Turkmenistan’s export markets, reduce its flaring of natural gas, and provide it with a new source of long-term revenue that could be used to help stabilize and sustainably grow its economy," said the energy diplomacy officer.

Second, there is the realization of Azerbaijan’s renewable energy potential, particularly wind and solar, he continued.

"Azerbaijan’s demand for energy will likely grow in the years ahead, and the economics of renewable energy there are becoming increasingly attractive. In part this is because the domestic price of alternative sources of energy, including natural gas, is rising. Renewable energy could help Azerbaijan affordably and sustainably meet its growing energy demand, and American companies could bring the capital and expertise if Azerbaijan develops an attractive investment environment in this sector," noted Reich.

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