ECONOMY
GECF Secretary General: Under the vision of President Ilham Aliyev, Azerbaijan is writing a new chapter of economic growth driven by a rich energy portfolio”
Baku, June 8, AZERTAC
Secretary General of the Gas Exporting Countries Forum (GECF) Mohamed Hamel has been interviewed by the Azerbaijan State News Agency (AZERTAC) on the sidelines of the 27th Baku Energy Forum.
AZERTAC presents the interview:
-How would you evaluate Azerbaijan’s activity as an observer member at the Gas Exporting Countries Forum?
-The GECF is an international organization established in 2008 and headquartered in Doha, Qatar. It seeks to advance the use of natural gas as a clean, affordable, reliable, affordable, versatile and abundant energy, and as a fuel of choice to satisfy the growing world energy needs, as well as to address climate change and improve air quality.
We are proud to have Azerbaijan as a member of the Forum since 2015.
All 19 countries of the GECF – including Azerbaijan – work, often under changing dynamics and difficult conditions, to keep the natural gas systems reliable and resilient. Even during the worst of the pandemic and then a sudden rise in demand, the GECF countries successfully fulfiflled their contractual obligations.
Specifically, with regards to Azerbaijan - the country remains a very active participant in various activities, events, and constitutional gatherings of the Forum, such as the Executive Board Meetings, the annual Ministerial Meeting, and the biennial Summit, the latest edition of which was held in Doha in February 2022. I was delighted to meet Parviz Shahbazov, the Minister of Energy, on the sidelines of the 6th GECF Summit and now once again in Azerbaijan, on the sidelines of the 27th Baku Energy Forum.
We do hope that, in the near future, Azerbaijan will upgrade its membership from observer to full member. This would commensurate to its increasing importance in the energy landscape.
-You have attended the Baku Energy Forum recently. How would you reflect on Azerbaijan’s role in global energy landscape?
-It is clear to me that under the vision of President Ilham Aliyev, Azerbaijan is writing a new chapter of economic growth for the country, driven by a rich energy portfolio.
This remarkable energy potential is enabling your country to meet the growing demand and effectively contributing to the security of supply. Azerbaijan is also taking steps to diversify its energy infrastructure vis-à-vis investments in hydro, solar, wind, oil, and, of course, natural gas infrastructure.
During my participation in the 27th Baku Energy Forum, I had the opportunity, also, to visit the Sangachal terminal. I was impressed with the level of quality at this world-class facility, how it operates as one of the world’s biggest oil and gas receiving, processing and exporting terminals, and its further potential.
The country is additionally cultivating strong partnerships with other nations as it assumes greater importance in the global energy landscape. Recent agreements between Azerbaijan and European destinations as well as a gas-swap contract between Azerbaijan-Iran-Turkmenistan, and Azerbaijan-UAE joint development of hydrogen projects testify to this.
Suffice to say that an advanced infrastructure, strong partnerships and abundance of mineral resources make Azerbaijan an established global energy player.
-Do you see a bright future for natural gas in the energy transition?
-The GECF strongly believes that gas will play a pivotal role as an energy for sustainable development, underpinned by increasing population and urbanization, a growing global economy, rising prosperity, and assertive policies to improve air quality and mitigate climate change.
As I said in my intervention at the 27th Baku Energy Forum, despite energy efficiency improvements, global energy demand will increase in the GECF reference scenario by 29% between now and 2050. As a result, natural gas will be the only hydrocarbon resource to increase its share, from 23% today to 27% in 2050.
Natural gas has the potential to contribute positively to any energy transition pathway. It helps to transition away from the use of wood and dung for cooking. It has a positive effect on indoor pollution. According to the World Health Organization, 3.8 million people die from indoor pollution every year. This is more than the pandemic tally.
Natural gas also contributes to improving air quality, notably in densely populated megacities. It provides stability to power grids and much-needed backup when the sun is not shining, and the wind not blowing.
Coal-to-gas switching constitutes a cost-effective mitigation means, in power generation and in the industry.
Finally, there is immense potential in decarbonizing natural gas itself. Proven technologies, such as carbon capture, utilization and storage (CCUS) can enable continuous use of natural gas in power generation and key emissions-intensive industries, such as steel, cement and chemicals. According to GECF modelling, CCUS could contribute to reducing CO2 emissions by more than four giga tons. Today, four GECF members have CCUS plants in operation. There is also the promise of hydrogen as an energy carrier.
However, all of this requires investment. We know that the natural gas reserves are plentiful. But turning reserves into supply requires financial commitment. We estimate this requirements to be to the tune of US$ 7.5 trillion by 2050.