Is Euro-5 quality diesel available on the internal market of Azerbaijan?
Currently, the internal market of Azerbaijan is still supplied with Euro-2 standard diesel fuel, the October report of the international agency “Argus”, which specializes in oil and petroleum product market analysis. It is noteworthy that in early June, at the Baku Oil Week exhibition, the State Oil Company of Azerbaijan (SOCAR) showcased that it had started producing Euro-5 quality diesel fuel in 2023. However, it later became clear that this quality of petroleum product is exported, and domestic supplies would commence later.
According to “Argus”, the internal market is still receiving diesel fuel of the previous quality. In the section “Market Prices for Motor Fuel” in the Caucasus countries, the agency noted that Euro-5 quality diesel fuel is not available in Azerbaijan.
The Turan agency found that the sulfur content in Euro-2 standard diesel fuel exceeds the minimum by 100 times compared to Euro-5. In Euro-2 fuel, the sulfur content is 0.1%, while in Euro-5, it ranges from 0.0005% to 0.001% (5-10 ppm).
Euro-5 standards significantly reduce the environmental impact of diesel vehicles by decreasing the formation of smog and acid rain. Stricter criteria for Euro-5 diesel fuel enhance combustion efficiency, leading to improved engine performance and fuel savings.
Argus, referencing market participants, also reported that Azerbaijan has been actively purchasing motor fuel since September to build reserves ahead of scheduled maintenance at the Baku G. Aliyev Oil Refinery in November.
Energy
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In 2023, Azerbaijan produced 4 million 369.8 thousand tons of fuel (automotive gasoline, diesel fuel, and aviation kerosene), whereas last year the total volume amounted to only 3 million 906.9 thousand tons. Over the past year, fuel production in the country decreased by 462.9 thousand tons, or by 10.6%.
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According to preliminary data, in the past year, Azerbaijan's gross domestic product (GDP) amounted to 126.3 billion manats (approximately $74.3 billion at the current exchange rate), a 4.1% increase compared to 2023, the monthly report by the State Statistical Committee of the Republic of Azerbaijan.
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In 2024, the total volume of oil and condensate production in Azerbaijan amounted to 29 million 63 thousand tons, the monthly report by the State Statistical Committee of the Republic of Azerbaijan.
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The Trans Adriatic Pipeline (TAP AG) consortium has developed a roadmap for preparing to transport hydrogen, according to TAP AG. “TAP’s goal is to develop infrastructure for hydrogen transportation. We have defined a roadmap for preparing for the medium- and long-term transportation of natural gas and hydrogen blends, as well as renewable gases. A preliminary study in 2021 confirmed the potential of TAP for transporting hydrogen mixtures in the future. Currently, we are conducting pipeline material tests at an international laboratory. The results of the first tests were received in the fourth quarter of 2024 and are now under evaluation. The next round of tests has already begun, and results are expected in 2025,” said the consortium.
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