Baku Sets the Rules of the Game: How Energy Week Changed the Balance of Power in Eurasia

The Baku Energy Week became the most important political event not only for Azerbaijan but for the entire region, within the framework of which the 31st Caspian Oil and Gas International Exhibition, the 14th Caspian Power International Exhibition, and the 31st Baku Energy Forum were held, the newspaper "Caspiy" writes.

The central event of the entire Energy Week was undoubtedly the speech by President of Azerbaijan Ilham Aliyev at its opening. It was this speech that set the framework for discussions and the current priorities of the country's energy policy. One of the central theses of the Azerbaijani head of state's speech was the defense of traditional energy. The President of Azerbaijan effectively supported the course of Donald Trump's administration on revising approaches to global climate policy and spoke against attempts to demonize the oil and gas sector. According to him, the global economy will need oil and gas for many years to come, and the energy transition should be carried out on the basis of pragmatism rather than ideological dogmas. In doing so, Baku makes it clear that it does not intend to abandon the development of the hydrocarbon sector even amid the intensifying climate agenda.

Baku sets the rules of the game: how Energy Week changed the balance of power in Eurasia - PHOTO

At the same time, Azerbaijan is betting not only on the extraction and export of raw materials but also on the development of deep hydrocarbon processing. According to the President of the country, SOCAR's refining capacity today reaches 30 million tons per year, and after the acquisition of Italian assets of the API group, the company's total oil refining capacity in the Mediterranean region grew from 13 million to 23 million tons. In essence, this represents a gradual transition from a raw material exporter model to a model of producing high value-added products — petroleum products, petrochemicals, and other hydrocarbon sector derivatives.

At the same time, the development of renewable energy is considered in Azerbaijan as one of the most important priorities of its energy policy, and the volumes of oil and gas processing are successfully combined with the goal of bringing solar and wind generation capacity to 8 GW by 2032.

SOCAR expands its presence

It is symbolic that it was within the framework of the Baku Energy Week that the official command was given to begin gas production under the Deep Gas project at the Azeri-Chirag-Gunashli (ACG) block of fields. According to expert estimates, deep gas reserves at ACG may amount to 113-170 billion cubic meters. The new project will create an additional resource base for export and strengthen Azerbaijan's position in the European energy market in the long term.

Of particular significance is the agreement on gas supplies from the Absheron field to the Turkish market, ensuring the long-term presence of Azerbaijani gas in Turkey. At the same time, SOCAR continues to expand its international presence. In Serbia, the company is entering the electricity sector by participating