European Union and Azerbaijan: Azerbaijan's Role in European Energy Security

Taleh Ziyadov

In the wake of the Russia-Ukraine gas crisis many European states came to realize that unless the European Union diversifies its energy supply routes, their future energy supplies could be at risk. Caspian hydrocarbons are widely seen as a supplementary energy source for Europe's diversification policy. In particular, Azerbaijan is the country best positioned to supply and transit a great deal of Caspian oil and natural gas to Europe. The recently constructed Baku-Tbilisi-Ceyhan oil pipeline and soon-to-be operational Baku-Tbilisi-Erzurum natural gas pipeline will deliver some 50 million tons of oil and 233 billion cubic feet of natural gas to the world markets annually. Europeans will remain the primary consumers of Azerbaijan's natural resources and Caspian gas will alleviate South East Europe's growing demand for natural gas.

In view of these developments, Azerbaijan is slowly becoming a strategic hub in the European energy strategy. After giving a brief overview of EU-Azerbaijan relations since 1991, this paper will seek to address the following questions: What is the potential for energy cooperation between the EU and Azerbaijan? Which European states are the most likely consumers of Azerbaijan oil and natural gas? What are the major issues and obstacles in realizing potential trans-Caspian pipelines connecting Central Asia, Azerbaijan, and Europe? What are the prospects of Azerbaijan's role as a reliable energy supplier? Where does Azerbaijan stand in the EU's strategic aim to diversify its energy supplies? The paper will conclude with analysis and policy recommendations for the European and Western governments and investors.


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