Azernews.Az

By Ellada Khankishiyeva,

Head of Trend analytical centre

Long term energy cooperation between Azerbaijan and Turkey is a factor that supports the entire region's success. The President of Azerbaijan, Ilham Aliyev noted during his official visit to Turkey that 'one nation, two states' have joined forces for the benefit of the people and the region.

The accession of the Turkish TPAO (Turkey's national oil and gas company) to the consortium of international oil companies operating within the framework of the 'Contract of the Century', signed September 20, 1994, was only an initial step in the development of strategic energy cooperation between Turkey and Azerbaijan.

Further projects for the construction of the Baku-Tbilisi-Ceyhan oil pipeline and the Baku-Tbilisi-Erzurum gas pipeline were meant to allow Azerbaijan to strengthen in the global energy market in close cooperation with Turkey.

"These pipelines transport not only oil and gas, but also peace, prosperity and stability from the Caspian region where peace predominates. We intend to further expand cooperation," the President of Azerbaijan said.

Cooperation between Azerbaijan and Turkey will also continue as part of the Trans-Anatolian Gas Pipeline (TANAP) project which is an important part of the Southern Gas Corridor and as part of the completion of the Baku-Tbilisi-Kars project which is included into the general route called the Modern Silk Road.

Aside from that, the consortium for development of the Shah Deniz gas and condensate field in the Caspian Sea's Azerbaijani sector chose the Trans-Adriatic Pipeline (TAP) as the gas supply route to Europe in June this year in order to enter the European market. Turkey will also play an important role in TAP.

Implementation of these plans will allow the creation of a new generation energy infrastructure in the Southern Gas Corridor that will help Europe to diversify its energy supply channels, relying on Azerbaijani and Caspian energy resources which are ultimately delivered through Turkey.

Azerbaijani President, Ilham Aliyev said the projects that will enhance the Caspian Sea's ties with the world are worthy to be remembered as the important events of 21st century.

Energy projects make Azerbaijan one of the main partners of Turkey in the field of foreign investments. The largest Azerbaijan has made and will make are those made in Turkey, the Azerbaijani President said.

Thus, the amount of investments to be made by the State Oil Company of Azerbaijan Republic (SOCAR) to the projects in Turkey together with the TANAP project, will amount to $17 billion. These investments will make Azerbaijan the largest investor in Turkey.

SOCAR, in addition to its ​​activities in Turkey's petrochemical market, also implements a project of constructing a new oil refinery in the country. This will allow the State Oil Company of the Azerbaijan Republic to strengthen in Turkey's energy market and in particular to provide the Petkim petrochemical complex where SOCAR has equity participation, with crude oil and create conditions for its petroleum products to enter the European market. The joint construction of a container port in Turkey with a capacity of 1.5 million TEU is also currently being discussed.

This means Azerbaijan's investments in the Turkish economy in 2023 will amount to $20 billion in the case of implementing SOCAR projects in Turkey in line with the schedule.