By Mirsaid Ibrahimzade
The State Customs Committee has disclosed the volumes of oil and gas exports for January-June 2019.
Azerbaijan exported 15.83 million tons of oil in the first half of 2019, which is a 16.7 percent growth compared to the first six months of 2018.
According to the report, in total, exports reached $7.6 billion (an increase of 10.4 percent).
Within the reporting period, Azerbaijan exported approximately 521,000 tons of oil products worth $261 million. Over the year, these figures decreased by 4.9 and 7.6 percent, respectively. The share of petroleum products in the country's exports made up 2.61 percent.
Azerbaijan which is an important supplier of natural gas in the Caspian Sea region, particularly to European markets, keeps increasing gas exports.
A serious growth is observed in Azerbaijan’s gas exports. In January-June 2019, Azerbaijan exported 5.6 billion cubic meters of gas, which recorded a 82.7 percent growth in comparison to the same period last year.
According to the report, in monetary terms, gas exports amounted to $1.47 billion (an increase of 10.4 percent).
Over the past year, the country exported 7.9 billion cubic meters of gas worth $1.5 billion.
In January-June 2019, total exports from Azerbaijan in monetary terms amounted to $9.9 billion, which is 15.19 percent more than in the same period last year.
Azeri–Chirag–Gunashli (ACG) is the largest oil and gas field in the Caspian Sea, covering more than 432 square kilometers. A contract for the development of ACG block of oil and gas fields was signed in 1994 for 30 years.
Proven oil reserves of ACG block of oil and gas fields are estimated at 1.2 billion tons, while gas reserves make 350 billion cubic meters.
On September 14, 2017, a modified and redeveloped agreement was signed on joint development and shared distribution of production from the Azeri, Chirag fields and the deepwater part of the Gunashli field (ACG). The new agreement provides for the development of the field until 2050.
Speaking of pipelines which will deliver Azerbaijani gas to European markets, it is important to note TANAP, along with TAP, is a part of Southern Gas Corridor project that envisages transportation of gas from Azerbaijani Shah Deniz-2 gas field to European markets.
The main components of the project are Shah Deniz Stage 2, expansion of the South Caucasus pipeline Baku-Georgia-border with Turkey, construction of the Trans-Anatolian Natural Gas Pipeline (TANAP) from Turkey’s eastern border to the western border and the Trans-Adriatic Pipeline (TAP) connecting Greece, Albania and the Adriatic Sea in southern Italy.
Supplies of Azerbaijani gas to Europe are expected in the amount of 10 billion cubic meters in early 2020. In addition, 6 billion cubic meters of Azerbaijani gas will be supplied to the western regions of Turkey. Deliveries to Turkey began in the summer of 2018.
Mirsaid Ibrahimzade is AzerNews’ staff journalist, follow him on Twitter: @MirsaidIbrahim1
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