Azernews.Az

BAKU – Azerbaijan’s oil production will peak in 2014, reaching a record high of 1.3 million barrels per day, according to the International Energy Agency.

Following the peak, the resource-rich South Caucasus republic’s oil output will slow down until 2020. By 2035, production will decrease to the record low of 0.9 million bpd, says the World Energy Outlook report released by IEA, an inter-governmental group of 28 countries.

After 2020, Azerbaijan will turn into the main transit state for transporting Kazakhstan’s crude to Europe, according to the report, which was presented in London on Wednesday.

It said further that besides oil, Azerbaijan has been turning into a producer of natural gas in recent years and currently sells gas to nearly all of its neighbors.

IEA also said gas production is expected to increase in the Caspian coastal nations. Total gas output in the region is projected to reach 310 billion cubic meters by 2035, chiefly on account of fuel produced by Turkmenistan, Azerbaijan and Kazakhstan.

Though Russia is the main importer of Caspian gas, exports to Europe and China will increase as well. In particular, Azerbaijani gas will be transported to European markets through Turkey via the Southern Corridor.

The Caspian region’s own demand for energy will exceed the current level by 50 percent by 2035.

Particularly, Turkmenistan and Kazakhstan’s rampant growth will lead to increased energy demand. However, Azerbaijan’s demand will be significantly lower and the country will surpass other states in the Caspian region on the efficient use of energy resources, IEA said.