Cooperation in the field of energy

Cooperation in the field of energy

The cooperation between Azerbaijan and Lithuania in the field of energy is not only important for the two countries, but it is also of certain importance for the region. Azerbaijan serves as a guarantee for diversification of energy supply of Europe. In this view, Azerbaijan is developing the transport infrastructure for the transportation of energy. Lithuania is willing to develop its energy security concept with participation of Azerbaijan.

In October, 2007, Azerbaijan, Georgia, Ukraine, Poland, and Lithuania, signed an agreement to set up a joint venture to design and build Baku-Odessa-Brody-Plock-Gdansk oil pipeline. In January, 2008, State Oil Company of Azerbaijan Republic (SOCAR), Georgian Oil and Gas Corporation (GOGC) and Lithuania’s Klaipedos Nafta joined Sarmatia, a Polish-Ukrainian consortium established on the base of Poland’s Sarmatia pipeline company.

On November 14, 2008, former Lithuanian President Valdas Adamkus visited Baku to participate in Energy Summit on cooperation in the field of energy. In one of his interviews, the President said that the extension of relations with Azerbaijan should not only be a priority for Lithuania, but also for the whole European Union. He added that Azerbaijan plays a crucial role in facilitating diversification of EU’s energy supply. Azerbaijan is a key player in successful realization of new energy projects in the region.

Valdas Adamkus also said that they are interested in the delivery of Azerbaijani oil to Poland upon realization of Odessa-Brody-Gdansk project, which will allow to take oil from here to Mazeikiu oil-processing plant  located in Lithuania and the processed oil products could later be delivered to neighboring markets.

With the view to develop relations in the field of industry and energy, the Minister of Industry and Energy of Azerbaijan Natig Aliyev and former Minister of Foreign Affairs of Lithuania Vigaudas Ushatskas discussed in Baku the energy cooperation between the two countries and further development of these relations.

“Lithuania considers Azerbaijan as the most developed and economically strongest country in this region and is willing to expand cooperation with this country in all fields. We also consider Azerbaijan as our closest strategic partner in the Caucasian region from political and economic point of view and are ready to develop energy security concept with close participation of Azerbaijan,” the Lithuanian Minister said.

He also underlined the need to strengthen efforts for diversification of oil and gas pipelines in the Caspian region saying that Lithuania is ready to cooperate with all stakeholders of this issue. In his turn, Natig Aliyev stressed that Azerbaijan maintains close cooperation with EU countries in the field of energy security and supports Lithuania’s efforts in this direction. Azerbaijan supports proposed projects aimed at delivery of the hydrocarbon resources from the Caspian sea to the Black Sea and Baltic Sea regions.

In recent years, SOCAR has been considerably expanding its presence in the retail sales market of oil products outside the borders of Azerbaijan. This is very interesting for Lithuania.

Upon closure of the nuclear power plant, Lithuania has had a huge need for fuel oil and therefore Lithuania is looking for suppliers who could supply this oil product at a large amount. Lithuania intends to cooperate with SOCAR to build a compressed gas terminal in its territory. Former Lithuanian Ambassador to Azerbaijan Kestutis Kudzmanas said that SOCAR’s participation in this project is a potential sphere for deepening relations between the two countries. He also noted that this terminal is intended for whole Baltic region rather than the Lithuanian market alone.

Discussions on the cooperation in the field of energy took place in frames of the official visit of the Chairman of the Lithuanian Seimas Irena Degutiene to Azerbaijan on February 8, 2011. That is, Lithuania hopes for Azerbaijan’s support in the solution of its gas problem. “Considering that Azerbaijan already supports Georgia in this field, we hope it will cooperate with us as well and this issue has been discussed during my visit as well,” the Chairman of the Lithuania Seimas said.

On May 2, 2011, the President of the Republic of Lithuania Dalia Grybauskaitė paid an official visit to Azerbaijan. During the visit, the energy cooperation between the two countries was discussed. The Joint Declaration on the Southern Gas Corridor between the EU and Azerbaijan is also important for Lithuania, as it is for every EU member.

A delegation led by Irina Urbonaviciute, adviser to the Prime Minister of the Republic of Lithuania paid a visit to Baku on February 4, 2014. The meetings held as part of the visit covered the expansion of energy cooperation between two countries. Establishment of cooperation between SOCAR and LITGAS, as well as delivery of the oil of Caspian region to European markets through new diversified routes was discussed as well.

Caspian Oil and Gas 2014 exhibition and conference held on 3 to 6 June, 2014, in Baku, was also attended by the delegation led by Jaroslav Neverovic, Energy Minister of the Republic of Lithuania. Meetings were held in Ministry of Energy of Azerbaijan and SOCAR during the visit and the significant opportunities of cooperation in the energy field were emphasized.

The 13th Energy Investment and Regulation Conference of the Energy Regulators Regional Association (ERRA) kicked off in Baku on the 27th of October 2014. About 200 experts from more than 40 countries participated in the conference.
The event focused on the energy industry in Azerbaijan, security of energy supply, water utility regulation and empowerment of customers in energy markets. Representatives of Lithuanian side took part in this conference.

Lithuanian companies participated in exhibition "Caspian Oil and Gas - 2015" and "Caspian Power 2015" - the 5th Caspian International Power and Alternative Energy exhibition.

On November 2016 a meeting with the delegation headed by the President of Municipalities Union of Lithuania, Mayor of Druskininkay Ricardas Malinauskas was held at the "Azerikimya" Production Association. During the meeting Mr. Ricardas Malinauskas underlined that the bilateral relations between the two countries are developing dynamically in various fields, including political, economic and humanitarian spheres and emphasized the importance of oil-chemical industry. He expressed the confidence that cooperation will contribute to the development of the Azerbaijani-Lithuanian relations.