One of the major tools lifting the geopolitical importance of the Republic of Azerbaijan, ensuring its national interests is related to the factor of oil in the world. Location of Azerbaijan in the geographic space rich in oil resources was correctly evaluated by national leader Heydar Aliyev in the 1990s and the oil strategy of the state was directed to the national interest. Contract of Century signed in 1994 laid the basis of the public oil strategy, started a dynamic economic development.      

Azerbaijan’s connection to the energy market brought a new revival, a practical policy was carried out to diversify the oil-gas infrastructure. At the moment, Azerbaijan is a partner to Europe in the solution of Europe’s energy security. It is no by chance that our republic is a key participant and initiator in the Southern Gas Corridor. The Southern Gas Corridor, foundation of which was laid at the Sangachal terminal in the 20th anniversary of the Contract of Century, was a logical continuation of the 20-year successful strategic development. The cornerstone of the first phase of the 45 bn USD project, which will be two times longer than BTC, was laid. The project will serve millions of consumers and open thousands of workplaces, which will guarantee the growing economic development of Azerbaijan. 

The Southern Gas Corridor expectations:

1) Azerbaijan will have additional dividends, domestic economy will be developing more rapidly;
2) The project will be an important factor in the settlement of Europe’s energy security;
3) International cooperation process will be accelerated on the basis of enhancement of multilateral partnership;
4) Markets will be more free and prices more reasonable;
5) As a bridge of peace between Asia and Europe, the project will ensure a durable cooperation in future as well.

Today, Azerbaijan is a motive force in European and global energy market. The Southern Gas Corridor is a historical event for Azerbaijan and also for relations with EU. Thanks to the project, Azerbaijan will play a necessary role in the diversification of Europe’s energy supply. 

Naila Mammadova
Azerbaijan Realities