Oil drilling near Baku, Azerbaijan
Azerbaijan looks to solve its midstream conundrum
The country wants to kickstart its upstream but first needs to persuade investors to foot the bill
Azerbaijan may have lofty ambitions to replace Russian gas supplies, but the country faces a steep challenge to build out the necessary infrastructure. The government has pledged to almost double exports to the EU by 2027, yet domestic output last year increased by just 4.1% and exports by 5.8%, according to the energy ministry. The reality is that Azerbaijan finds itself in a ‘chicken and egg’ situation. The former Soviet republic cannot expand production and shipping capacity without first raising more investment. On the flipside, Europe is prepared to take additional gas but does not appear willing to put in the investment required to make that happen. For investors, the availability of c
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