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The European Union is reportedly seeking an oil deal with Azerbaijan as it seeks to distance itself from Russia amid its war in Ukraine.
The European Commission, the EU’s executive arm, has proposed to member states a plan that would help the continental alliance by increasing natural gas imports and supporting the expansion of an existing pipeline, R first reported after receiving draft documents of the plan.
The plan would not only help the EU, which aims to reduce Russia’s oil dependency by 90 percent by the end of 2022, but could help Europe amid record-high inflation.
Ships will be loaded and unloaded on Tuesday, March 1, 2022 in the port of Brunsbüttel, Germany. The area is under discussion as a location for a new LNG (Liquefied Natural Gas) terminal. (Frank Molter/dpa via AP/AP Newsroom)
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The proposal, which still has to be approved by European nations, reportedly said it would “aim to support bilateral trade in natural gas, including through exports to the European Union via the Southern Gas Corridor of at least 20 billion cubic meters of gas annually up to 2027, in line with marketability and market demand.”
Last year, the Trans-Adriatic Pipeline — the final leg of the Southern Gas Corridor pipeline — reportedly brought 8 billion cubic meters of natural gas from Azerbaijan to Europe.
If approved, the proposal would aim to expand this network with the support of European and Azerbaijani funding.
E.ON, Europe’s largest operator of energy networks, has rejected calls to shut down the Nord Stream 1 gas pipeline as part of sanctions against Russia over the invasion of Ukraine, the company told the Rheinische Post. (AP Photo/Dmitry Lovetsky, File/AP Newsroom)
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The proposal reportedly said there would be “long-term, predictable and stable contracts” to ensure security for gas producers and also said their expanded partnership would need to be aligned with the EU’s climate change targets.
Both the EU and Azerbaijan would need to set parameters to curb greenhouse gas emissions in their supply chains and explore future trading opportunities for hydrogen.
EU Energy Commissioner Kadri Simson will visit Azerbaijan later this month.
FILE – Wind turbines stand at a wind farm in Marsberg, Germany, June 15, 2022. The European Union’s decision to include natural gas on a list of activities considered sustainable could derail progress made to reduce greenhouse gas emissions. (AP Photo/Martin Meissner, File / AP Newsroom)
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The proposal comes at a time when the EU has seen a significant spike in inflation due to the recovery from the COVID pandemic and rising fuel costs amid war in Ukraine.
For the first time in 20 years, The euro fell below the US dollar on Wednesday and was valued at $0.998 on the forex market, according to the BBC.