Energy sector in Azerbaijan - statistics & facts
A major oil and gas producer, Azerbaijan has the highest dependence on fuel exports within the Commonwealth of Independent States (CIS). In 2023, more than 91 percent of the nation's total merchandise export revenue came from the sale of petroleum products. The largest national company in the sector is the State Oil Company of the Republic of Azerbaijan (SOCAR), which accounts for roughly a quarter of the country’s oil production.
In 2023, Azerbaijan's total installed electricity production capacity included 1.69 gigawatts generated from renewable energy sources (RES). Hydropower stations as an alternative energy source represent the primary renewable source contributing to Azerbaijan's energy supply. In contrast, wind and solar energy production has remained consistently low during the given period.
As one of the largest oil producers in Europe and the CIS, Azerbaijan has a strong energy sector, with its strategic partnerships enhancing its role in the global energy market.
Fossil fuels and energy production
The Azeri–Chirag–Gunashli oil field complex, located in the Caspian Sea, is one of the most prominent oil fields in Azerbaijan. However, as the country seeks to reduce its dependence on oil, production has declined over time, having reached 17.8 million metric tons in 2023. In contrast, Azerbaijan's natural gas production has been increasing, achieving its highest volume in 2022, at 46.8 billion cubic meters. Moreover, the largest natural gas field in Azerbaijan, Shah Deniz, has significantly increased its production in recent years, reaching a peak of 4.4 million metric tons in 2022.In 2023, Azerbaijan's total installed electricity production capacity included 1.69 gigawatts generated from renewable energy sources (RES). Hydropower stations as an alternative energy source represent the primary renewable source contributing to Azerbaijan's energy supply. In contrast, wind and solar energy production has remained consistently low during the given period.
Azerbaijan’s energy exports
As a nation rich in oil and gas, Azerbaijan has been actively working to strengthen its international connections, with Turkey being one of its largest partners. In this context, Azerbaijan exported 2.1 million megawatt-hours of energy to its neighboring country in 2023. Notably, natural gas exports to Turkey were the highest among other destinations, with a total of 7.8 million metric tons exported, surpassing those sent to Italy. In addition, Azerbaijan maintains connections with several other countries, including Georgia, Bulgaria, Greece, Russia, Romania, and Iran.As one of the largest oil producers in Europe and the CIS, Azerbaijan has a strong energy sector, with its strategic partnerships enhancing its role in the global energy market.
