Unleashing the Caspian’s potential in oil, gas and critical minerals
As the war in Iran pushes energy security ever higher on government agendas, importing countries want to diversify their sources of oil and gas. For IOCs and NOCs scanning the globe for upstream investments, resource holding countries are in pole position. Geopolitically stable contenders in the Caspian region include Azerbaijan, Kazakhstan and Turkmenistan. These producers ...
In the wake of the ongoing conflict in Iran, energy security has become a top priority for importing nations, prompting them to seek alternative sources of oil and gas. As investors scour the globe for upstream opportunities, countries in the Caspian region, including Azerbaijan, Kazakhstan, and Turkmenistan, are in a prime position to capitalize on this demand. Geopolitically stable, these nations have the potential to elevate the region's standing as a reliable supplier of energy and natural resources.
Azerbaijan, a significant oil and gas producer, has already invested heavily in critical infrastructure to export its resources from the landlocked Caspian Sea. Its upstream industry, established over a century ago, reached global prominence in the early 2000s with the development of BP's ACG and Shah Deniz projects, achieving a total production of 1.2 million barrels of oil equivalent per day by 2010.
The country's gas production is expected to remain steady through the late 2030s, driven by Phase 2 of TotalEnergies' Absheron gas project. With a focus on domestic fuel demand, Azerbaijan is also exploring offshore investment opportunities, such as ExxonMobil's exploration license for a large shale play.
The country's refining capacity is primarily geared towards meeting domestic fuel needs. However, the construction of major export pipelines has facilitated the 'Southern Corridor,' connecting Azerbaijan's oil and gas supplies to wider markets beyond the Caspian. The BTC oil pipeline (2005), the TANAP (2018), and the TAP (2020) gas pipelines have bolstered this connection, transporting Azerbaijani crude and gas to global markets.
New pipeline developments, such as the 'Middle Corridor,' could further enhance the region's energy connectivity and diversification of export routes, potentially transforming the Caspian region into a linchpin for the global energy supply chain.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
