OPEC Improves Outlook for Azerbaijan

Azerbaijani authorities have set the base oil price at $70 per barrel for the 2025 budget, while a preliminary price of $65 is projected for the following years (2026-2028), forecasts by the Ministry of Economy, published by the Ministry of Finance. It notes that the government estimated the average oil price at $75 per barrel in the 2024 budget.

The average annual export price for natural gas is expected to be $242 per thousand cubic meters in 2025 under the basic scenario, a document from the Ministry of Economy concerning the preliminary indicators of the state and consolidated budgets for 2025. For 2026-2028, the price for a thousand cubic meters of natural gas is projected at $236.

According to government forecasts, Azerbaijan's GDP is expected to reach 129.2 billion manats ($76 billion) in 2025, with the non-oil and gas GDP comprising 92.2 billion manats ($54.2 billion). By 2028, the GDP is projected to increase to 150.8 billion manats ($88.7 billion), with the non-oil and gas GDP at 117.2 billion manats ($68.9 billion).

Azerbaijan plans to install 7 GW of renewable energy capacity by 2030, Orkhan Zeynalov, Deputy Minister of Energy, said at the Caspian Energy Forum in Baku. Of the new green capacity, 2 GW will meet the growing domestic demand, 4 GW will be exported through the "green energy" corridor to Europe, and another 1 GW is planned for export via Nakhchivan to Türkiye and Europe.