Azerbaijan's state oil company SOCAR and German energy company Uniper will collaborate on projects aimed at improving the energy efficiency of oil and gas production in Azerbaijan, SOCAR announced on Saturday.
The two companies signed an agreement in Baku during German Chancellor Angela Merkel’s trip to Azerbaijan on Saturday, the company said, with which the aim is to enhance energy efficiency in oil and gas production processes and lower greenhouse gas emissions in Azerbaijan.
Initial projects have already been identified and are now set to be reviewed in more detail, according to SOCAR.
"The German energy provider and the Azerbaijan state oil and gas company have been working in close cooperation for the past five years," SOCAR said.
Uniper and SOCAR concluded a long-term gas supply contract in 2013, SOCAR reminded, adding that up to 1.5 billion cubic meters of natural gas is slated to flow to Europe each year via the Southern Gas Corridor until 2045.
As one of the biggest projects in the world with an investment volume of around $40 billion, the 3,500 kilometer-long Southern Gas Corridor includes the development of the Shah Deniz-2 oil field, South Caucasus Pipeline, Trans Anatolian Natural Gas Pipeline (TANAP) and the Trans Adriatic Pipeline (TAP).
"These gas deliveries serve to diversify the European and with it the German gas supplies and enhance security of supply and competition," SOCAR said.
The two companies formed a joint venture (JV) for the development of energy efficiency in 2016, SOCAR also added.
The JV is expected to gain additional value by modernizing and expanding the electricity and steam generation facilities at the SOCAR chemical complex in Sumgayit Azerikimya, it explained. The launch of new facilities is scheduled for early 2020.
By Ebru Sengul