Azerbaijan’s “huge” gas reserves in the Caspian Sea can be utilized under certain conditions, said Baku’s Energy Minister Parviz Shahbazov on Thursday, amid a deepening global gas crisis that has sent prices soaring ahead of what is shaping up to be a bone-chilling winter.
Speaking on the sidelines of Russian Energy Week, Shahbazov noted that Baku is boosting its gas supply to offset the crisis.
“Azerbaijan produces and exports gas, and is boosting its supply. The country’s huge gas reserves in the Caspian may be used under certain conditions and with investments. “
Shahbazov also warned against the world relying on energy resources that could be harmful to the environment, such as coal.
“Higher gas prices also put pressure on other energy resources, including coal. The volume of coal supplies to Europe over the last six months show that, in fact, by reducing investments in the gas industry, using more coal, more petroleum products, we cause more damage to the environment,” added Shahbazov.
The minister went on to point that it is necessary to use all existing energy resources.
“Gas is more environmentally friendly compared to other fuel types. We see quite different forecasts for gas, which causes serious problems for many producers and consumers,” Shabazov concluded.
A global energy crisis, driven by unprecedented natural gas demand, supply imbalances and price shocks, has led some countries to switch from gas to coal for electricity generation, heightening carbon emissions.
According to the International Energy Agency (IEA, the vast natural gas price spikes, which hit €160 per megawatt in the Dutch TTF, eroded the cost-competitive position of gas-fired power plants against coal-based generation during the third quarter of this year.