Minister of Energy: We need to be more open to cooperation and innovation in the energy sector

Under the conditions of instability, uncertainty and complexity typical for the global energy as well, we should be more open to cooperation and innovation both at the national and global levels. It is the joint efforts that will allow us to effectively respond to ongoing changes and turn the problems of instability in the energy system into opportunities and to achieve positive results in solving the actual issues of global energy. Minister of Energy Parviz Shahbazov said this at the international conference titled “Global Energy and International Political Risks” held by the Valdai Discussion Club and Azerbaijan’s Center of Analysis of International Relations, which was attended by Russian Minister of Energy Alexander Novak. 
The Minister noted the return to the regulatory mechanism in the “OPEC plus” format and the adoption of a historic decision in April as one of the the first steps in this direction. It was noted that for today the OPEC Plus agreement is the only way to support the oil market. However, the recession in the global economy and continued limited economic activity are putting serious pressure on demand. While daily global oil demand in the first quarter fell by 6.4 million barrels, in the second quarter this figure was more than 17 million barrels. It is expected that the downward trend will weaken in the second half of the year. Unfortunately, it is impossible to say with certainty that, given the current uncertainty, demand will fully recover in the near future. According to some estimates, it will take at least 2 years to stabilize the oil market: 'I think that in this extraordinary situation, the main mission of the oil-producing countries is to ensure the consistent operation of the OPEC plus format as a sustainable and effective mechanism for fulfilling the commitments made. Stability in the oil market meets the interests of all market participants, and in this regard, I consider it important to further expand the OPEC plus format by attracting other large oil manufacturers.  As for the fulfillment of commitments, I believe that the three-month performance of OPEC plus countries, including July, will become the basis for next steps. Azerbaijan is committed to its obligations and will continue its active role in the modern global energy system," the minister added.  Minister of Energy Parviz Shahbazov linked the current position of Azerbaijan as an energy country with the achievements of the oil strategy, which is the result of the  strong will of national leader Heydar Aliyev over the years of independence. He noted that the energy policy under the leadership of Azerbaijani President Ilham Aliyev contributes to the Intercontinental integration and energy security, prosperity and the cooperation environment based on the principle of mutual benefit between states. The Minister emphasized that the Southern Gas Corridor project is a contribution of this policy: “The last segment of the Southern Gas Corridor, the TAP that will supply gas to Europe, is being completed, despite the difficulties caused by the pandemic.  The Southern Gas Corridor is planned to be fully operational by the end of this year during the difficult period of the energy sector. The Southern Gas Corridor is a project that, first of all, promotes the development of the country's gas sector, and with the growth of gas production, the creation of industrial enterprises and ensures sustainable development. The gas production in the country is expected to reach 38.2 bcm this year and 44.5 bcm in 2022." 
Speaking about the process of accelerating energy transformation due to the pandemic, the minister also underlined the steps taken to make a breakthrough in the development of renewable energy in the country, as part of the reform process in the energy sector. The minister noted: "As a positive result of negotiations with international energy companies, without waiting for the adoption of the law, we launched pilot projects with a capacity of 240 MW of wind and 200 MW of solar energy. Preparations are underway to create approximately 1,000 MW of additional capacity to increase the share of renewable energy sources in the country by 30% by 2030."  
The minister also spoke about the role of cooperation with Russia in the development of relations between the two countries.