Azerbaijan has significantly increased its natural gas exports to Turkey in 2024, a development that could have a profound impact on the country’s chemical industry. According to the Energy Market Control and Regulatory Authority (EPDC), Azerbaijan supplied a total of 9.47 billion cubic metres (bcm) of natural gas to Turkey between January and October 2024, marking a 10% rise compared to the same period last year. This growth solidifies Azerbaijan’s role as a key supplier in Turkey’s energy mix, with important implications for the chemical sector, which is heavily reliant on natural gas.

The increase in Azerbaijani gas exports is largely driven by the Shah Deniz field, one of the world’s largest natural gas reserves located in the Caspian Sea. The gas is delivered to Turkey via the Southern Gas Corridor, a vital energy infrastructure project that not only supplies Europe but is now proving crucial for Turkey’s energy security. Natural gas is an essential feedstock for Turkey's chemical industry, particularly for producing fertilisers, plastics, and petrochemical products. The enhanced availability of Azerbaijani gas represents a strategic opportunity for Turkey’s chemical sector, as it will help meet the growing demand for these products both domestically and internationally.

Turkey’s chemical industry is the country’s second-largest industrial sector and depends on a stable supply of natural gas for its energy-intensive production processes. With the global demand for chemicals—spanning sectors such as agriculture, automotive, and construction—on the rise, reliable and cost-effective energy supplies are critical. The surge in Azerbaijani gas exports will enable Turkey to better meet this demand, while also reducing its reliance on traditional suppliers such as Russia, which still accounts for 43.3% of Turkey’s total natural gas imports.

A key advantage of Azerbaijani gas is its cost-effectiveness compared to liquefied natural gas (LNG), which is subject to greater price volatility in the global market. The stable pricing of pipeline gas from Azerbaijan offers a more predictable energy cost structure, which could lower production expenses for Turkey’s chemical manufacturers. This, in turn, could lead to more competitive pricing for Turkish chemical products on the international market, enhancing their export potential.

Furthermore, the increased supply of Azerbaijani gas is likely to encourage further investments in Turkey’s chemical industry, facilitating the expansion of production capacities. As Turkey continues to diversify its energy sources, the growing role of Azerbaijani gas aligns with the country’s broader strategy to strengthen its industrial base, reduce dependence on a limited number of suppliers, and position itself as a global leader in the chemical sector.

In conclusion, Azerbaijan’s increased natural gas exports to Turkey not only contribute to energy diversification but also provide significant opportunities for growth within the Turkish chemical industry. By ensuring a stable, competitive energy supply, this partnership strengthens Turkey’s position in the global market and supports the long-term sustainability of its chemical manufacturing sector.