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Azerbaijan’s large energy resources fundamental for global market

4 June 2014 11:17 (UTC+04:00)
Azerbaijan’s large energy resources fundamental for  global market

By Gulgiz Dadashova

Azerbaijan's role as an energy producer has changed markedly.

U.S. ambassador to Azerbaijan, Richard Morningstar made the remark at a joint reception organized by the embassies of the U.S. and UK in Azerbaijan as a part of the 21st International Caspian Oil and Gas Exhibition and Conference.

The envoy said with the construction of the Baku-Tbilisi-Ceyhan pipeline, Azerbaijan became major supplier of oil to world markets.

"The construction for the Southern Gas Corridor has begun. It will make Azerbaijan a major supplier of gas to Europe," Morningstar stressed.

The ambassador further said the objectives of the U.S. energy policy in the region have remained consistent over the last twenty years, adding that the U.S. wants to help Azerbaijan to develop its energy resources to help it become a strong and independent nation.

He went on to add that secondly, the U.S. would like Azerbaijan's energy resources to contribute to European and world energy supplies, stressing that diversifying global energy supply benefits everyone.

"A strong and stable Azerbaijan contributes to regional stability and benefits the region, as well as Europe and the whole world with respect to the global energy markets," Morningstar stressed.

British Prime Minister's Trade Envoy to Azerbaijan, Kazakhstan and Turkmenistan, for his part said, Azerbaijan is considered to be playing a vital role in supplying European gas market for decades.

Charles Hendry said Azerbaijan is at the heart of the region, and the country's large energy resources are fundamental for the European and global energy market.

Hendry stressed that the Southern Gas Corridor is designed to transport Caspian gas to European markets and it will play important role for diversification of the EU supplies.

"The construction of the corridor is one of the most challenging infrastructure projects," he said.

The Southern Gas Corridor is a project that will allow Europe to diversify its sources of hydrocarbon supply and strengthen energy security and enable Azerbaijan to get a new market in Europe.

The gas to be produced within the second phase of the Azerbaijani gas condensate Shah Deniz field's development is considered as the main source for the Southern Gas Corridor.

Hendry further stressed that Azerbaijan is an important partner for the UK and not only in energy sphere.

"We have 300 companies working here. And not only in energy, but also in such spheres as construction, design, and education and etc.," he said.

Azerbaijan is an important current and future supplier of both oil and natural gas. The country's largest hydrocarbon deposits are located in the Caspian Sea, particularly, the Azeri-Chirag-Guneshli (ACG) block of oil and gas fields and Shah Deniz, Umid and Absheron gas fields.

The Energy Ministry reports that currently the country's proven gas reserves are at the level of 2.6 trillion cubic meters, while the oil reserves amount to 2 billion tons.

The cited indicators ensure future development of the gas industry in Azerbaijan for a period exceeding 100 years.

According to the projections, the country's oil production will hit 51 million tons in 2015. Meanwhile, Azerbaijan's gas production will exceed 30 billion cubic meters in 2015.

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