September 29, 2025

by AEA in News

Serbia to sign agreement on gas power plant with Azerbaijan

Serbia has completed the negotiations with Azerbaijan on the construction of a natural gas power plant near the city of Niš, according to Ana Brnabić, the Speaker of the National Assembly. She also said an agreement has been reached on additional quantities of gas that would be supplied to Serbia from the Caucasian country.

The negotiations for the construction of a gas power plant in Niš have been completed, Ana Brnabić said. She added that the facility would be a joint project between Azerbaijan and Serbia, RTS reported.

In mid-November last year President of Serbia Aleksandar Vučić revealed that the government was starting talks with Azerbaijan on a possible joint construction of a 1 GW gas power plant in Niš, or two smaller units.

The agreement would likely be signed during the first meeting of the strategic cooperation council

Speaking during her visit to Azerbaijan, Ana Brnabić underlined that the signing of the gas power plant agreement would likely occur in the first meeting of the bilateral strategic cooperation council, when it is most convenient for the presidents, Aleksandar Vučić and Ilham Aliyev.

The investment near Niš would serve as an additional, significant stimulus and guarantee for Serbia’s energy security and stability, she stressed. The gas power plant will have a capacity of around 500 MW, which is of huge significance for Serbia, according to Brnabić.

The investment is estimated at EUR 600 million, she added.

An agreement reached on additional quantities of natural gas will be signed in the coming weeks

The country’s draft 2040 energy strategy includes a plan for a gas-fired cogeneration plant in Niš of 150 MW in electricity capacity and another 100 MW for heat. Another one would be built in Novi Sad. It is envisaged at 350 MW and 100 MW, respectively.

Earlier, Serbia’s Minister of Mining and Energy Dubravka Đedović Handanović stressed that the gas power plant project is important for generating baseload energy and providing the security of supply.

Brnabić also said an agreement on additional quantities of gas has been reached and that the plan was to sign it in the coming weeks. Serbia already has quantities contracted with Azerbaijan, but additional amounts have been secured at the request of President Aleksandar Vučić for the winter months, she explained.

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August 29, 2016

by AEA in News

SOCAR JOINS NEW ADRIATIC PIPE PROJECT

Four western Balkans nations signed a memorandum of understanding with Azerbaijan state Socar on co-operation on building the Ionian Adriatic pipeline (IAP) on the sidelines of a Dubrovnik forum 25-26 August.

The declaration of intent to develop the 5bn m³/year line was originally signed in 2007 by Croatia, Montenegro and Albania. The length of the line from Split in Croatia to Fier in Albania will be around 530 km and cost around €610mn ($683mn).

Socar will join Croatia, Albania, Bosnia & Herzegovina and Montenegro in the project which will include a section of the Trans-Adriatic-Pipeline (TAP) designed to bring gas from Shah Deniz 2 field in the Caspian Sea to EU through the so-called Southern Gas Corridor (SGC) after 2020.

Socar’s goal is to connect the Caspian Sea and the Adriatic Sea, the head of Socar Balkans, Murad Heydarov, said after the signing ceremony. “The SGC, which includes the Ionian-Adriatic gas pipeline is an important part of our plans, we have good co-operation with the countries involved in this project,” he said, according to Socar sources.

Croatia’s economy minister Tomislav Panenic said that the future pipeline would provide gas supplies for southeastern Europe. “We have defined our joint initiative for the development of the Ionian-Adriatic gas pipeline as a route that will make sure that these markets are provided with gas. We hope that this route will be a connection between the north and the south and that this may pave the way for a full liberalisation of the gas market in Europe,” he said, Croatian news agency Hina reported.

Montenegro’s economy minister Vladimir Kavaric said that IAP was the only opportunity for the gasification of Montenegro and “the government is ready to do everything to accelerate and successfully implement the project.”

According to Bosnia & Herzegovina’s foreign trade minister Mirko Sarovic, “Bosnia & Herzegovina supports this regional project and approach and ask the partners to ensure that a section of the route goes through Bosnia & Herzegovina.”

Dubrovnik Forum. From left: Presidents of Hungary Janos Ader, Lithuania Dalia Grybauskaite, Poland Andrzej Duda, Croatia Kolinda Grabar-Kitarovic, Bulgaria Rosen Plevneliev and Slovenia Borut Pahor.

According to preliminary design IAP aims to connect existing transmission system of Croatia via Bosnia & Herzegovina (offshore), Montenegro and Albania to the TAP.

The Baltic-Adriatic-Black Sea (BABS) forum brought together six presidents and high-ranking government officials from 12 EU countries and Albania on August 25-26 in Dubrovnik, Croatia. A panel discussion at the “Strengthening European energy security” looked at the benefits of energy cooperation in BABS and the role of LNG terminals linking north and south Europe.

Connecting the LNG terminal in Poland with one planned on the island of Krk in Croatia is among the energy projects that BABS region countries want to implement in order to boost competitiveness and development, Croatia’s president Kolinda Grabar-Kitarovic and Poland’s president, Andrzej Duda, said addressing forum at the opening ceremony August 25.

President Duda pointed out the importance of energy connections.“The dominance of a single supplier for the region is harmful and dangerous”, he said adding that development of the gas corridor between the north and the south, as well as the LNG terminal on the island of Krk are important.

The next meeting of BABS will take place in Wroclaw in June 2017.

August 29, 2016

by AEA in News

Azerbaijan to enhance its role in forming energy corridors

The Southern Gas Corridor (SGC) project will enhance Azerbaijan’s role in forming eastern and western energy corridors.

Deputy Energy Minister Natig Abbasov made the remarks at the first Eurasian Conference of the International Association for Energy Economics (IAEE) in Baku on August 29.

Despite the decline in oil prices, Azerbaijan continues to realize big transnational projects, said the deputy minister.

As a country located at the intersection of Europe and Asia, Azerbaijan has exceptional opportunities for transportation of energy resources, he noted adding that the SGC is one of the biggest infrastructure and energy projects of Europe.

“As an energy security project, the SGC will bring benefit to all of us – producers, transit countries and consumers – for years to come,” added Abbasov.

The Southern Gas Corridor is one of the priority energy projects for the EU. It envisages the transportation of 10 billion cubic meters of Azerbaijani gas from the Caspian Sea region to the European countries through Georgia and Turkey.

At the initial stage, the gas to be produced as part of the Stage 2 of development of Azerbaijan’s Shah Deniz field is considered as the main source for the Southern Gas Corridor project. Other sources can also connect to this project at a later stage.

He also noted that Azerbaijan made a new contribution to Europe’s energy security with the SGC project.

“TANAP (Trans-Anatolian Natural Gas Pipeline), which will be laid from the Georgian-Turkish border to the Turkish-Greek border, is a very important project in the context of ensuring the regional, particularly European security,” said the deputy minister. “The creation of the energy corridor will be completed by laying the TAP (Trans Adriatic Pipeline), from the Turkish-Greek border to Italy’s south.”

TAP has enough capacity to transport Azerbaijani gas to Europe and will allow creating a complex network of gas pipelines in Europe, said Abbasov.

“Moreover, the construction of the planned Ionian Adriatic Pipeline (IAP) will allow delivering Azerbaijani gas to Bulgaria, Montenegro, Croatia, Bosnia and Herzegovina,” he added.

Currently, Azerbaijan produces 82-88 million cubic meters of gas and 115,000-120,000 tons of oil per day, noted the deputy minister, adding that proved gas reserves of the country amounted to 2.6 trillion cubic meters, oil reserves – two billion tons.

The IAP pipeline is planned to be connected to the TAP pipeline in the Albanian city of Fier.

Azerbaijani gas will be delivered to a number of countries of the southeastern Europe via the IAP pipeline. The pipeline’s capacity will be five billion cubic meters per year.

Organizers of the TAP pipeline have already signed a corresponding memorandum with builders of the IAP, in particular, with Plinacto Ltd. (Croatia), BH-Gas (Bosnia and Herzegovina), Geoplin plinovodi (Slovenia), as well as with governments of Montenegro and Albania.

Abbasov further said that Azerbaijan is considering the possibility to transport Iranian gas through its territory to Europe. He noted that it will be possible through Iran’s joining the TANAP project.

Abbasov didn’t also exclude possibility of transporting Iraqi gas through Azerbaijan to Europe.

TANAP project envisages transportation of gas from Azerbaijan’s Shah Deniz field to the western borders of Turkey. The gas will be delivered to Turkey in 2018, and after completion of the Trans Adriatic Pipeline’s construction, the gas will be delivered to Europe in early 2020.

The First Eurasian Conference organized by the International Association for Energy Economics (IAEE) to focus on the energy economics emerging from the Caspian region. The members of the Council of the International Association for Energy Economics approved the decision on the 39th IAEE Conference in Baku.

The conference to be end on August 31 is attended by 56 speakers from 24 world countries.

June 13, 2016

by AEA in News

Azerbaijan is knocking strongly on Europe’s doors..

Azerbaijan is enhancing its role in improving the energy security of Europe and strengthening its position in the European energy markets. Azerbaijan hosted the 23rd International Oil and Gas Exhibition titled “Caspian Oil and Gas 2016” from June 1-4, when more than 400 participants from 30 countries took part in the event held in Bakuunder the auspices of Ilham Aliyev, the president of Azerbaijan.

Unlike other energy-rich countries in the region, Azerbaijan has been following a proactive policy in developing its resources and delivering oil and gas to international energy markets. In fact, Azerbaijan has undertaken an active role in both upstream and downstream industries. Azerbaijan not only invests in the development of its hydrocarbon resources, but in the transmission network for delivering gas to European markets as well. Azerbaijan together with Turkey initiated the Trans Anatolian Natural Gas Pipeline (TANAP), which will deliver gas produced in the giant Shah Deniz and other gas fields in the Caspian Sea. In addition, through state-owned oil giant SOCAR, Azerbaijan holds a share in the South Caucasus Pipeline (SCP) as well as in the Trans Adriatic Pipeline (TAP) which will connect to TANAP at the Turkish-Greek border and transport natural gas to Italy passing from Greece, Albania and the Adriatic Sea. Furthermore, SOCAR is about to acquire a controlling share in Greek gas transmission system operator DESFA, implying that Azerbaijan will be active in all segments of the European gas markets.

These three pipelines, SCP, TANAP and TAP, together will constitute a milestone in the opening of the Southern Gas Corridor (SGC), which is considered a project of common European interest. The European Union has long been seeking to develop the fourth gas corridor, i.e. the SGC corridor, to diversify gas supply resources and reduce its dependency on supplies from Russia, thus bolstering its energy security. The SGC will enable the EU to gain access to new sources of supply in the Caspian Basin and the Middle East. At the moment only Azerbaijan has committed to supply gas to Europethrough this corridor. However, it is expected that other gas-rich countries in the region will also supply gas to the European markets through the SGC, once this corridor becomes operational. Günther Oettinger, then-EU energy commissioner, once pointed out that this corridor would have the potential to meet up to 20 percent, or about 100 billion cubic meters (bcm) per year, of the EU’s gas needs in the long-term.

Officials from both the U.S. and the EU have repeatedly acknowledged their reliance on Azerbaijan for energy diversification and achieving common goals to improve energy security. In their letters addressed to the participants of the “Caspian Oil and Gas 2016” exhibition, U.S. President Barack Obama and U.K. Prime Minister David Cameron stressed the importance of the SGC in improving Europe’s energy security and the leading role of Azerbaijan in the development of this corridor.

Nowadays all relevant parties recognize the importance of Azerbaijan in improving the EU’s energy security. As mentioned above, through state-owned SOCAR, Azerbaijan will be active in all segments of markets and play a significant role in the European energy markets. This proactive energy policy, a logical extension of oil and gas strategy laid down by former Azerbaijani President Heydar Aliyev, will enhance Azerbaijan’s role in global energy markets and will bring huge economic benefits to the country.