Page 8 - FSUOGM Week 37 2022

FSUOGM PIPELINES & TRANSPORT FSUOGM

Amid global energy crisis Balkan states

reach out to energy-rich Azerbaijan

AZERBAIJAN WITH the deepening energy crisis in the West She stressed that “the Ministry of Mining and
triggered by Russia’s intervention in Ukraine, Energy is already conducting talks with the line
The Balkan region more European countries, mainly Eastern Euro- ministry of Azerbaijan so that Serbia could have
is heavily reliant on pean and Balkan countries, including Bulgaria a contract for the supply of this energy generat-
Russian gas. and Serbia, are eyeing alternative suppliers for ing product long before the completion of the
additional natural gas volumes. The security pipeline.”
cataclysms in Europe in the light of the war have Given the strategic importance of decreasing
pushed European countries to seek partners the Russian energy monopoly over the European
such as Azerbaijan. countries, the European Investment Bank (EIB)
Since 2022, Azerbaijan has held several provided €25mn for the construction of the Ser-
high-level meetings with EU officials regarding bia-Bulgaria interconnector in addition to the
exporting additional gas volumes to Europe. It €49mn grant provided earlier by the EU Instru-
is noteworthy that non-EU countries like Serbia ment for Pre-Accession Assistance.
are also keen on deepening energy partnerships
with Azerbaijan. Serbia’s willingness to acquire Serbia eyes Azerbaijan electricity
more Azeri gas depends on the construction However, amid the growing energy crisis, Ser-
progress of the EU-supported Serbia-Bulgaria bia is eyeing not only imports of Azeri gas but
gas interconnector – a 171 km natural gas electricity from Azerbaijan. At the end of August
interconnector that will connect Nis (Serbia) 2022, on the 25th anniversary of establishing
and Sofia (Bulgaria), thus supporting regional diplomatic relations between Serbia and Azer-
energy security. According to reports, the inter- baijan, President Alexander Vucic held a phone
connector may become operational in early conversation with President Ilham Aliyev, asking
2023, giving Serbia and Bulgaria a non-Russian him for help in providing secure and sufficient
gas supply option. Obviously, Serbia is heavily amounts of electricity. After brief negotiations,
dependent on Russian oil and gas, which have Azerbaijan approved an interstate agreement
been disrupted following the Ukraine war and with Serbia on purchasing electricity from Azer-
the imposition of sanctions on Moscow by the baijan on favourable terms.
European Union, which Serbia is seeking to join. Reportedly, the natural gas and electricity
With the inauguration of the new intercon- flow to Serbia will start in 2023, as it requires the
nector, Serbia will be able to join the Southern shift of necessary infrastructure of both coun-
Gas Corridor network and import gas from tries. The import of additional gas volumes and
Azerbaijan and from LNG terminals in Greece. electricity from Azerbaijan could help Serbia to
In early September 2022, Serbia’s Deputy Prime stabilise the domestic energy crisis that occurred
Minister Zorana Mihajlovic, in her interview because of the war and poor management of Ele-
with Azeri media, emphasised that Serbia’s ktroprivreda Srbije, EPS, the state-owned elec-
energy ministry is in official talks with Azerbai- tricity company that had major problems with
jan on the early signing of a gas supply contract. many of its facilities over the year. In late 2021,

P8 www. NEWSBASE .com Week 37 15•September•2022