Saturday, 30 April 2011

Azerbaijan: Can Baku Emerge as Middle Eastern Energy Supplier? | EurasiaNet.org

Could turmoil in the Middle East provide a market opportunity for Azerbaijan’s state-run energy company SOCAR? A pending energy deal with Jordan could open the way for the company’s aggressive expansion into Arab markets.

After a February pipeline explosion cut its gas imports from Egypt for more than a month, Jordan, which imports almost all of its energy resources, decided to diversify its suppliers, the government-run Petra news agency reported earlier this month. Loss of the Egyptian gas cost Jordan about $28 million a week after it changed suppliers, according to the country’s Energy Ministry.

Enter Azerbaijan. An April 14 protocol on economic cooperation between Azerbaijan and Jordan includes a framework for discussions about the export of an unspecified amount of Azerbaijani crude oil and natural gas to Jordan.

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