LNG in Azerbaijan

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Natural Gas Europe reported in 2012 that Azerbaijan's Energy Minister Natia Aliyev was keen to explore LNG export options, understanding that they would provide an alternative to overland pipeline routes and the accompanying political implications.[1]

According to Azerbaijan's State Statistics Committee, in January-June 2010 Azerbaijan exported 84,513 tonnes of LNG, earning US $8.13 million, an increase of nearly 209% compared to the previous year.[2]

In April 2012, the head of the Azerbaijani state oil company, SOCAR, announced the implementation of a $14 billion infrastructure project, which would include the construction of a gas liquefaction plant to process gas into LNG. This was planned to begin in the first quarter of 2013 and be completed in 2020, with a planned capacity of 15 billion cubic metres (bcm), and SOCAR would be the key stakeholder. The remainder of the funding would come from SOFAZ, the State Oil Fund, and export-import banks of other nations if necessary.[3]

According to Azerbaijan's Zerkalo newspaper in 2012, the ever increasing global production of LNG, threatens the position of traditional oil and gas producers, including Azerbaijan.[4]


  1. "BP - British Petroleum - Turkey Set to Join Black Sea LNG Project?" Natural Gas Europe, 12 February 2012.
  2. "Azerbaijan increases LNG exports" News.az, 23 August 2010.
  3. "Azerbaijan: SOCAR Plans LNG Plan" LNG World News, 11 April 2012.
  4. "СПГ заставит пересмотреть проэкты" Zerkalo, 28 August 2012.