Energy in Azerbaijan
Encyclopedia
Energy in Azerbaijan describes energy
and electricity
production, consumption and export in Azerbaijan
.
At the turn of the 20th century, Azerbaijan
accounted for half of the world’s oil
production . Oil wells have been operating in Baku
since the 1840s. As of the early 21st century, almost all production came from off shore in the Caspian Sea
. Azerbaijan was one of only four former Soviet republic
s (along with Russian, Kazakhstan, and Turkmenistan) to be self-sufficient in petroleum
. However, production declined following the 1991 breakup of the Soviet Union until foreign investment provided the capital for new development, turning this trend around in 1998. Production rose from 194000 oilbbl/d in 1998 to an average of 318000 oilbbl/d in 2004.
According to industry journals and government sources, proven oil reserves as of 2004 totaled between 7 billion and 13 Goilbbl. The State Oil Company of Azerbaijan
(SOCAR) has planned for joint development of the off shore fields (which are now largely untapped) and has entered into several agreements to build oil pipelines. For instance, a project with the Caspian Pipeline Consortium
would carry oil from the Caspian Sea to the Russian Black Sea
port of Novorossiysk
. Another deal with Turkey
involved the construction of a 1,760 km pipeline, the symbolic first length of which was installed in September 2002, to carry crude oil from Baku to Ceyhan
, Turkey. In 1995 Azerbaijan had 17 offshore oil fields in production. Guneshli, about 96 km off the Azeri coast, currently accounts for more than half the annual production. By the end of 2002, 33 companies in 15 foreign countries had signed agreements to develop 21 major oil fields in Azerbaijan. As of 2003 disputes over off shore oil rights in the Caspian
Sea continued to hinder development of those reserves.
production has become more important in recent years, especially in Baku, where some of the oil wells have been exhausted. Proven reserves as of late 2004 totaled 1.37 trillion cubic metres. Production of natural gas in 2004 totaled 4.6 billion cubic metres. Ukraine
and Iran
are interested in running a natural gas pipeline through Azerbaijan en route to Eastern Europe.
In 2003, net electricity generation was estimated at 19.5 billion kWh. In 2003, consumption of electricity was estimated at 19.8 million kWh. Total installed capacity at the beginning of 2001 was 5.1 million kW. Eight thermal plants supply more than 80% of capacity, and the rest comes from 5 hydroelectric plants. The main power plants (both are thermal) were near Ali-Bayramy (1,100 MW) and Mingechaur (2,100 MW).
, herbicide
s, fertilizer
s, kerosene
, synthetic rubber
, and plastics.
World energy resources and consumption
]World energy consumption in 2010: over 5% growthEnergy markets have combined crisis recovery and strong industry dynamism. Energy consumption in the G20 soared by more than 5% in 2010, after the slight decrease of 2009. This strong increase is the result of two converging trends...
and electricity
Electricity generation
Electricity generation is the process of generating electric energy from other forms of energy.The fundamental principles of electricity generation were discovered during the 1820s and early 1830s by the British scientist Michael Faraday...
production, consumption and export in Azerbaijan
Azerbaijan
Azerbaijan , officially the Republic of Azerbaijan is the largest country in the Caucasus region of Eurasia. Located at the crossroads of Western Asia and Eastern Europe, it is bounded by the Caspian Sea to the east, Russia to the north, Georgia to the northwest, Armenia to the west, and Iran to...
.
Oil
- Production: - 1099000 oilbbl/d (2008)
- Consumption: - 160000 oilbbl/d (2007)
At the turn of the 20th century, Azerbaijan
Azerbaijan
Azerbaijan , officially the Republic of Azerbaijan is the largest country in the Caucasus region of Eurasia. Located at the crossroads of Western Asia and Eastern Europe, it is bounded by the Caspian Sea to the east, Russia to the north, Georgia to the northwest, Armenia to the west, and Iran to...
accounted for half of the world’s oil
Oil
An oil is any substance that is liquid at ambient temperatures and does not mix with water but may mix with other oils and organic solvents. This general definition includes vegetable oils, volatile essential oils, petrochemical oils, and synthetic oils....
production . Oil wells have been operating in Baku
Baku
Baku , sometimes spelled as Baki or Bakou, is the capital and largest city of Azerbaijan, as well as the largest city on the Caspian Sea and of the Caucasus region. It is located on the southern shore of the Absheron Peninsula, which projects into the Caspian Sea. The city consists of two principal...
since the 1840s. As of the early 21st century, almost all production came from off shore in the Caspian Sea
Caspian Sea
The Caspian Sea is the largest enclosed body of water on Earth by area, variously classed as the world's largest lake or a full-fledged sea. The sea has a surface area of and a volume of...
. Azerbaijan was one of only four former Soviet republic
Republics of the Soviet Union
The Republics of the Soviet Union or the Union Republics of the Soviet Union were ethnically-based administrative units that were subordinated directly to the Government of the Soviet Union...
s (along with Russian, Kazakhstan, and Turkmenistan) to be self-sufficient in petroleum
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
. However, production declined following the 1991 breakup of the Soviet Union until foreign investment provided the capital for new development, turning this trend around in 1998. Production rose from 194000 oilbbl/d in 1998 to an average of 318000 oilbbl/d in 2004.
According to industry journals and government sources, proven oil reserves as of 2004 totaled between 7 billion and 13 Goilbbl. The State Oil Company of Azerbaijan
State Oil Company of Azerbaijan
The State Oil Company of Azerbaijan Republic is the state-owned oil and natural gas corporation of Azerbaijan. It is considered to be one of the largest oil companies in the world. It produces oil and natural gas, operates the country's two oil refineries and the running of oil and gas pipelines...
(SOCAR) has planned for joint development of the off shore fields (which are now largely untapped) and has entered into several agreements to build oil pipelines. For instance, a project with the Caspian Pipeline Consortium
Caspian Pipeline Consortium
The Caspian Pipeline Consortium is a consortium and a pipeline to transport Caspian oil from Tengiz field to the Novorossiysk-2 Marine Terminal on Russia's Black Sea coast. It is also a major export route for oil from the Kashagan and Karachaganak fields...
would carry oil from the Caspian Sea to the Russian Black Sea
Black Sea
The Black Sea is bounded by Europe, Anatolia and the Caucasus and is ultimately connected to the Atlantic Ocean via the Mediterranean and the Aegean seas and various straits. The Bosphorus strait connects it to the Sea of Marmara, and the strait of the Dardanelles connects that sea to the Aegean...
port of Novorossiysk
Novorossiysk
Novorossiysk is a city in Krasnodar Krai, Russia. It is the country's main port on the Black Sea and the leading Russian port for importing grain. It is one of the few cities honored with the title of the Hero City. Population: -History:...
. Another deal with Turkey
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
involved the construction of a 1,760 km pipeline, the symbolic first length of which was installed in September 2002, to carry crude oil from Baku to Ceyhan
Ceyhan
Ceyhan is a city in southeast Turkey and with 105,000 inhabitants it is the second largest city of Adana Province after the capital Adana. Ceyhan is the transportation hub for Middle Eastern, Central Asian and Russian oil and natural gas. It is situated on the Ceyhan River, from which it takes...
, Turkey. In 1995 Azerbaijan had 17 offshore oil fields in production. Guneshli, about 96 km off the Azeri coast, currently accounts for more than half the annual production. By the end of 2002, 33 companies in 15 foreign countries had signed agreements to develop 21 major oil fields in Azerbaijan. As of 2003 disputes over off shore oil rights in the Caspian
Sea continued to hinder development of those reserves.
Natural Gas
Natural gasNatural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
production has become more important in recent years, especially in Baku, where some of the oil wells have been exhausted. Proven reserves as of late 2004 totaled 1.37 trillion cubic metres. Production of natural gas in 2004 totaled 4.6 billion cubic metres. Ukraine
Ukraine
Ukraine is a country in Eastern Europe. It has an area of 603,628 km², making it the second largest contiguous country on the European continent, after Russia...
and Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
are interested in running a natural gas pipeline through Azerbaijan en route to Eastern Europe.
Electricity
- production: 23,80 billion kWh (2007)
- consumption: 27,50 billion kWh (2007)
In 2003, net electricity generation was estimated at 19.5 billion kWh. In 2003, consumption of electricity was estimated at 19.8 million kWh. Total installed capacity at the beginning of 2001 was 5.1 million kW. Eight thermal plants supply more than 80% of capacity, and the rest comes from 5 hydroelectric plants. The main power plants (both are thermal) were near Ali-Bayramy (1,100 MW) and Mingechaur (2,100 MW).
Hydroelectric power plants
- Enikend Hydro Power PlantEnikend Hydro Power PlantThe Enikend Hydro Power Plant is one of Azerbaijan's largest hydro power plant having an installed electric capacity of 112 MW....
- 112 MW - Mingechevir Hydro Power PlantMingechevir Hydro Power PlantThe Mingechevir Hydro Power Plant is one of Azerbaijan's largest hydro power plant having an installed electric capacity of 402 MW. It was built as a part of Mingachevir reservoir on Kura River....
- 402 MW - Sarsang Hydro Power PlantSarsang Hydro Power PlantThe Sarsang Hydro Power Plant is a hydro power plant in Tartar Rayon of Azerbaijan Republic, having an installed electric capacity of 50 MW on Sarsang reservoir....
- 50 MW - Shamkir Hydro Power PlantShamkir Hydro Power PlantThe Shamkir Hydro Power Plant is one of Azerbaijan's largest hydro power plants having an installed electric capacity of 380 MW. It is located on Shamkir reservoir in Shamkir Rayon of Azerbaijan....
- 380 MW - Yenikend Hydro Power PlantYenikend Hydro Power PlantThe Yenikend Hydro Power Plant is one of Azerbaijan's largest hydro power plant having an installed electric capacity of 150 MW....
- 150 MW
Refineries
Petroleum and natural gas resources are the basis for an extensive system of refineries, which produce gasolineGasoline
Gasoline , or petrol , is a toxic, translucent, petroleum-derived liquid that is primarily used as a fuel in internal combustion engines. It consists mostly of organic compounds obtained by the fractional distillation of petroleum, enhanced with a variety of additives. Some gasolines also contain...
, herbicide
Herbicide
Herbicides, also commonly known as weedkillers, are pesticides used to kill unwanted plants. Selective herbicides kill specific targets while leaving the desired crop relatively unharmed. Some of these act by interfering with the growth of the weed and are often synthetic "imitations" of plant...
s, fertilizer
Fertilizer
Fertilizer is any organic or inorganic material of natural or synthetic origin that is added to a soil to supply one or more plant nutrients essential to the growth of plants. A recent assessment found that about 40 to 60% of crop yields are attributable to commercial fertilizer use...
s, kerosene
Kerosene
Kerosene, sometimes spelled kerosine in scientific and industrial usage, also known as paraffin or paraffin oil in the United Kingdom, Hong Kong, Ireland and South Africa, is a combustible hydrocarbon liquid. The name is derived from Greek keros...
, synthetic rubber
Synthetic rubber
Synthetic rubber is is any type of artificial elastomer, invariably a polymer. An elastomer is a material with the mechanical property that it can undergo much more elastic deformation under stress than most materials and still return to its previous size without permanent deformation...
, and plastics.