Azerbaijan and Turkey Extend Natural Gas Agreement to 2030

Azerbaijan and Turkey have fortified their energy cooperation by extending their natural gas agreement until 2030. The agreements were signed between BOTAŞ, SOCAR, and Azerbaycan Gaz Tedarik Şirketi during the 29th International Caspian Oil and Gas Exhibition in Baku, Azerbaijan.

The extension of the natural gas agreement between Azerbaijan and Turkey has significant implications for energy security in the region and beyond. This development is expected to play a vital role in ensuring a stable energy supply, which can have a positive impact on the economy and trade in the region.

Key developments from the agreements include the extension of the natural gas supply agreement between BOTAŞ and Azerbaycan Gaz Tedarik Şirketi, which was initially set to expire in 2024, now extended to 2030. Additionally, four agreements were signed between BOTAŞ and SOCAR for natural gas delivery and swap, aiming to transport Azerbaijani gas to Europe and Nakhchivan via Turkey, and Turkmenistan gas to Turkey.

Alparslan Bayraktar, Turkish Minister of Energy and Natural Resources, highlighted the significance of these agreements, stating, "In our visit to Baku, we took new steps to establish the infrastructure for the Natural Gas Cooperation Agreement we signed with Azerbaycan Economy Minister Mikayıl Cabbarov in Istanbul last month." He added that these agreements would facilitate the transportation of Azerbaijani gas to Europe and Nakhchivan via Turkey, and the delivery of Turkmenistan gas to Turkey.

The construction of the Igdir-Nakhchivan gas pipeline is expected to be completed soon, with Nakhchivan set to be supplied with gas through Turkey by the end of the year. This development is part of a broader strategy to enhance energy security and cooperation between the two nations.

The agreements also open up opportunities for gas supplies from Azerbaijan and third countries to Turkey and Europe through a relevant intergovernmental agreement. Discussions during the signing ceremony also touched upon priorities in natural gas and green energy, in addition to projects that ensure the development of the multilateral energy partnership at a new stage.

The 4th Azerbaijan-Türkiye Energy Forum is set to take place this year, with sustainable measures expected to contribute to the development of cooperation in the energy sector. This forum will further solidify the energy partnership and explore new avenues for collaboration.

Azerbaijan and Turkey have a long history of energy cooperation, particularly with the Shah Deniz field development. The agreement on the exploration, development, and production sharing for the Shah Deniz field was initially signed in 1996 and extended in 2013, ensuring a long-term and stable energy collaboration between the two nations.

The recent agreements between BOTAŞ, SOCAR, and Azerbaycan Gaz Tedarik Şirketi highlight the continuing commitment of both Azerbaijan and Turkey to enhance their energy partnership. These developments are expected to play a vital role in ensuring energy security for the region and beyond.

Key Takeaways

• Azerbaijan and Turkey extend natural gas agreement until 2030.
• Agreements ensure stable energy supply, boosting regional economy and trade.
• Four agreements signed for natural gas delivery and swap between BOTAŞ and SOCAR.
• Igdir-Nakhchivan gas pipeline construction to be completed soon, supplying Nakhchivan with gas.
• 4th Azerbaijan-Türkiye Energy Forum to take place this year, focusing on sustainable energy cooperation.