Switzerland considering gas supplies from Azerbaijan as alternative to Russian

Switzerland, in the event of a shortage of Russian gas supplies, will be able to continue to receive gas from the south - from North Africa through Italy, as well as supply it from Azerbaijan, Thomas Hegglin of the Swiss Gas Industry Association (VSG) told the financial agency AWP, SİA informs.

“In the event of interruptions in the supply of Russian gas to Europe, Switzerland will also have to reduce its consumption. However, it has an advantage over other countries due to connections in all directions. As you know, we have scenarios in which Russia can stop gas supplies or the West may decide to stop gas imports from Russia as a sanction measure. We must be prepared for this," Thomas Hegglin said.

According to him, the shortage of Russian gas supplies cannot be fully compensated within Europe, at least in the short term, and without reducing consumption: “If there was a shortage in Switzerland, the Confederation would take measures, including switching to fuel oil for consumers’ dual-fuel (in which fuel oil can be replaced by natural gas), calls for savings and limiting requirements for large consumers."

However, Swiss gas supplies are now largely secure, Hegglin says. In his opinion, there should be enough gas for its industry, even though prices are at an exceptionally high level.

“Securing gas supply in the coming winter could be a big challenge. That is why the Federal Council already decided on the measures at the beginning of March. Thus, it is expected that gas companies will be able to start joint purchases of gas, storage capacity and liquefied natural gas (LNG),” the representative of the VSG said.

According to Hegglin, the country does not produce natural gas, so all demand has to be imported: "In addition, there are practically no commercial gas storage facilities in Switzerland. The federal government mainly buys gas from outlets in neighboring Germany, France and Italy, as well as in the Netherlands."

Just under half of Switzerland's gas imports in 2020 came from Russia, according to trade association statistics. Norway provided a meager quarter and the European Union (EU) a fifth. Algeria still accounted for 3% of supplies.

The EU wants to reduce imports of Russian gas by two-thirds by the end of the year compared to the previous year. More than 40% of imported gas comes from Russia: in particular, Germany depends on Russian imports. In comparison, gas consumption in Switzerland is very low and accounts for about 15% of the country's total energy demand.

It should be noted that at present, the capacity of the Trans-Adriatic Gas Pipeline (TAP), the European part of the Southern Gas Corridor, through which gas from Azerbaijan is supplied to the South of Europe, is 10 billion cubic meters of gas per year.

The Trans Adriatic Pipeline AG consortium is considering 3 scenarios for expanding TAP capacity: limited - up to 14.4 billion cubic meters, partial - up to 17.1 billion cubic meters, and full - up to 20 billion cubic meters per year.

Initially, the TAP project included the possibility of doubling the throughput capacity, and at the moment the TAP consortium is evaluating the demand for additional gas pipeline capacities. Market testing is a regulated process through which shippers can access new long-term TAP capacity.

The construction of TAP was completed in October 2020. The total length of TAP is 878 km, of which 550 km passes through the northern part of Greece, 215 km through the territory of Albania, 105 km - along the bottom of the Adriatic Sea, and 8 km - through the territory of Italy.

Azerbaijani gas supplies via TAP to consumers in Italy, Greece, and Bulgaria began on December 31, 2020.

The total supply of Azerbaijani gas via TAP to Europe reached 10 billion cubic meters. Currently, over 28 million cubic meters of gas are supplied to Europe daily via TAP.

It is expected that in 2022 gas exports from Azerbaijan to Turkey will amount to 8.2 billion cubic meters, to Europe - 9.1 billion cubic meters.

In 2021, Azerbaijan exported 19.2 billion cubic meters of gas, including 8.2 billion cubic meters to Europe.

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