Brussels, 18 July 2022
Today in Baku, Commission President Ursula von der Leyen and Commissioner for Energy Kadri Simson met with President Ilham Aliyev and Azeri Energy Minister Parviz Shahbazov to strengthen the existing cooperation between the EU and Azerbaijan. The two Presidents signed a new Memorandum of Understanding on a Strategic Partnership in the Field of Energy.
Currently, the EU and Azerbaijan are also negotiating a new comprehensive agreement, which will allow for enhanced cooperation in a wide range of areas, including economic diversification, investment, trade and making full use of the potential of civil society, while underscoring importance of human rights and rule of law.
Following the visit in Baku today, the EU-Azerbaijan Cooperation Council will meet on 19 July in Brussels to review the overall relations and discuss potential areas of mutual interest for cooperation in the future.
President von der Leyen said:
Today, with this new Memorandum of Understanding, we are opening a new chapter in our energy cooperation with Azerbaijan, a key partner in our efforts to move away from Russian fossil fuels. Not onlyare we looking to strengthen our existing partnership which guarantees stable and reliable gas supplies to the EU via the Southern Gas Corridor. We are also laying the foundations of a long-term partnership on energy efficiency and clean energy, as we both pursue the objectives of the Paris Agreement. But energy is only one of the areas where we can enhance our cooperation with Azerbaijan and I look forward to tap the full potential of our relationship.
Securing alternative gas supplies for Europe
The new Memorandum of Understanding on a Strategic Partnership in the Field of Energy signed by the two Presidents today includes a commitment to double the capacity of the Southern Gas Corridor to deliver at least 20 billion cubic metres to the EU annually by 2027. This will contribute to the diversification objectives in the REPowerEU Plan and help Europe to end its dependency on Russian gas. Based on the strengthened energy cooperation, Azerbaijan is already now increasing deliveries of natural gas to the EU, from 8.1 billion cubic metres in 2021 to an expected 12 bcm in 2022.
Commissioner for Energy, Kadri Simson, said:
The new Memorandum of Understanding underlines the strategic role of the Southern Gas Corridor in our diversification efforts. Azerbaijan has already increased the natural gas deliveries to the EU and this trend will continue, with up to 4 billion cubic meters of additional gas this year and volumes expected to more than double by 2027. But our cooperation goes beyond that, accelerating the deployment of renewables and addressing methane emissions; these steps will both increase security of supply and help achieve our climate goals.
As stated in the MoU, the EU and Azerbaijan share the ambition to accelerate the development and deployment of renewable energy generation and transmission capacity to fully reap the synergies between the EU’s clean energy transition and Azerbaijan’s strong untapped renewable energy potential, in particular in the offshore energy sector.
The two parties also acknowledge the importance of the Global Methane Pledge, and recognise that making the natural gas supply chain as efficient, environmentally and climate friendly as possible is a collective responsibility. The MoU supports the creation of schemes to collect natural gas that would otherwise be vented, flared or released into the atmosphere. Our cooperation will also be crucial to support Azerbaijan’s accession to the Pledge.
Following the signature of the Memorandum of Understanding, Commissioner Simson will hold an EU-Azeri energy dialogue with Minister Shahbazov to discuss the practical implementation of the Memorandum of Understanding.
Background
The EU has been working intensively with international partners for several months to diversify supplies and mitigate the rise in energy prices. In the EU external energy engagement strategy accompanying the REPowerEU plan, the Commission recognised that the Southern Gas Corridor plays a key role in the diversification of natural gas supply to the EU, in particular for South Eastern European countries.
The Commission has long supported the expansion of the Southern Gas Corridor as a major contribution to secure, reliable and predictable natural gas supplies in South Eastern Europe and, potentially, also in the Western Balkans, via the Trans Adriatic Pipeline.
More Information for subscribers:
EU-Azerbaijan Memorandum of Understanding
Press Statement by President von der Leyen [will be available later]
Source – EU Commission
Statement by President von der Leyen with Azerbaijani President Aliyev
Baku, 8 July 2022
Thank you very much Mr President for the warm welcome here in Baku. And thank you for stepping up and for supporting the European Union. Because already before Russia’s brutal invasion of Ukraine, the Russian gas supplies to Europe were no more reliable. The European Union has therefore decided to diversify away from Russia and to turn towards more reliable, trustworthy partners. And I am glad to count Azerbaijan among them. You are indeed a crucial energy partner for us and you have always been reliable. You were a crucial partner not only for our security of supply, but also in our efforts to become climate neutral. The Memorandum of Understanding that we have just signed makes our energy partnership even stronger.
I want to emphasise three points from our Memorandum of Understanding. The first is that we will double the supply of gas from Azerbaijan to the European Union. Indeed, with this MoU, we commit to the expansion of the Southern Gas Corridor. This is already a very important supply route for the European Union, delivering currently more than 8 billion cubic metres of gas per year. And we will expand its capacity to 20 billion cubic metres in a few years. From next year on, we should already reach 12 billion cubic metres. This will help compensate for cuts in supplies of Russian gas and contribute significantly to Europe’s security of supply.
The second point that is very prominent in the MoU is the topic of the renewables. Azerbaijan has a tremendous potential in renewable energy – you just described it, Mr President –, and in particular in offshore wind and green hydrogen. We discussed it extensively in our bilateral meeting. Today, with our MoU, we are laying the ground for solid cooperation in that area. So gradually, Azerbaijan will evolve from being a fossil fuel supplier to becoming a very reliable and prominent renewable energy partner to the European Union.
Finally, our cooperation on gas has to be consistent with our responsibilities on climate. This includes, for example, the emissions of methane. Our MoU sets out commitments to reduce methane emissions throughout the entire gas supply chain. And, as we have discussed, Mr President, I strongly encourage Azerbaijan to join the Global Methane Pledge, which is now supported by 119 countries. Azerbaijan has made enormous progress and has a lot to deliver.
Beyond energy, President Aliyev and I discussed the full range of our relation and cooperation. The EU-Azerbaijan Cooperation Council will meet tomorrow in Brussels and discuss how to take forward our bilateral cooperation. We are working right now on a new bilateral agreement that we hope to conclude soon. The aim is to further expand the strong economic partnership we do have. Indeed, the European Union is: the first commercial partner of Azerbaijan; its first export destination; and one of its most important sources of investments. And we want to expand this. We are investing EUR 60 million of EU funds in Azerbaijan until 2024. And the Economic and Investment Plan has the potential to mobilise up to EUR 2 billion in additional investments. It is already at work, supporting round about 25,000 Azeri small and medium companies, and making the Port of Baku a sustainable transport hub.
This is for us very important, because this leads indeed to the topic of connectivity that you have mentioned. We also discussed that. In particular, how to deepen our ties to bring our people and societies closer together. This is the mission of our Global Gateway strategy. And this is also the essence of our Eastern Partnership. The European Union wants to work with Azerbaijan to build connections with Central Asia and beyond. So we follow with great interest the discussions and the ideas about trans-Caspian connections. We will deepen these discussions. Finally, we want to finalise the Common Aviation Area Agreement. Because this would greatly boost opportunities for business, trade and for tourism.
To reach Azerbaijan’s full potential, it is important to create the right conditions for investor confidence. This includes a greater involvement of civil society, and a free and independent media. The European Union is committed to a secure, stable and prosperous South Caucasus. We are the leading donor in demining in the country, for example. We have also discussed this very important topic. We have now just announced a new EUR-4.25-million package for this purpose. But we are also willing to offer machinery and skills in this very important field. All in all, the European Union is firmly attached to your region, Mr President. We value our partnership. And this partnership will consistently grow and deepen over time.
Thank you very much again for hosting us here. And thank you very much for the joint signing of the MoU.
Source – EU Commission