Azerbaijan signs energy cooperation deal with Saudi Arabia

Europe, Middle East May 26, 2023 , by IRIA No Comments

Energy ministers from Azerbaijan and Saudi Arabia met in Riyadh on May 24, 2023, to ink an energy cooperation agreement. The two countries agreed to increase cooperation in the field of petroleum, petrochemicals, and gas, as well as renewable energy.

Saudi Arabia’s Minister for Energy Abdulaziz bin Salman met with his Azerbaijani counterpart Perviz Shahbazov in a high-level meeting. “We signed a Cooperation Agreement in the field of energy with the Kingdom of Saudi Arabia,” Shehbazov said announced in a tweet.

He said that Saudi Arabia is an important partner of Azerbaijan and a brotherly country. “Our energy cooperation will be multifaceted and more comprehensive,” he added. The agreement highlights that the cooperation between Riyadh and Baku would not only limit to the government or industrial level but would also lead to joint research initiatives between the universities from both countries.

Azerbaijan relies heavily upon fossil fuels to fulfill its domestic energy needs. The cooperation agreement would help Baku to shift towards sustainable and renewable energy resources. Saudi Arabia’s ACWA Power Company is currently handling the construction of the Khizi-Absheron wind farm in Azerbaijan. After its completion, the wind farm would produce 240 MW of electricity to cater to the energy needs of more than 300,000 households in Azerbaijan. The project would save 220 million cubic meters of gas and reduce 400,000 tons of carbon dioxide emission annually.

^{Saudi Energy Minister Prince Abdulaziz Bin Salman and Azerbaijani Energy Minister Parviz Shahbazov meet in Riyadh at the signing ceremony of the energy agreement on May 24, 2023. (Image Credit: Saudi Press Agency)}

The latest agreement is part of Saudi Arabia’s strategy to open new markets and expand in Central Asia. The Kingdom has already signed similar agreements and MoUs with several Arab countries such as Egypt, Oman, Jordan, and Iraq.

Saudi-Azeri relations

The Republic of Azerbaijan and the Kingdom of Saudi Arabia established diplomatic relations on February 24, 1992. Saudi Arabia was among the first few countries to recognize Azerbaijan’s independence after the fall of the Soviet Union in 1991. Being two energy-exporting countries in the region, Saudi Arabia and Azerbaijan have a history of successful economic cooperation. The countries are also part of several international organizations including the Organization of Islamic Cooperation and the OPEC+.

Saudi Arabia’s diplomatic machinery is working at its full potential this year. The Kingdom has cemented its place as a major regional player. Riyadh renewed its relations with Iran in April this year after it was severed in 2016. Saudi Arabia is also playing a major role in resolving the refugee crisis in Sudan, after the latest outbreak of deadly clashes, as well as taking part in ceasefire talks.