AGP Executive Report

Energy & Industry: bp has started production of non-associated gas from the Azeri-Chirag-Gunashli (ACG) project and deployed multilateral well technology offshore to unlock additional reserves and extend ACG’s economic life. Gas Exports: SOCAR, TotalEnergies, XRG and BOTAŞ signed a 15-year Absheron gas supply deal to Turkey from 2029 (33 bcm total; ~2 bcm/year to the Turkish market), with final investment decision expected in 2026. Regional Energy Routes: Ukraine and Azerbaijan discussed expanding energy transport routes using Ukrainian infrastructure, including longer-term Azerbaijani gas cooperation. EU Energy Partnership: Azerbaijan and the EU provisionally agreed 2026–2030 Partnership Priorities, while EU officials flagged renewable energy cooperation with Azerbaijan as a strategic priority. Transport & Logistics: World Bank approved $372m for Georgia’s Trans-Caspian Transport Corridor (TC-GATE) to modernize rail/road links and cut logistics bottlenecks along the Middle Corridor. Trade & Agriculture: Azerbaijan exported 68,400 tons of cotton fiber worth $93.4m in Jan–Apr 2026, up sharply year-on-year. People & Economy: Analysts say former IDPs are moving toward “direct partners” in Azerbaijan’s economic future as reintegration and long-term participation policies replace purely humanitarian support.

Transport & Logistics: Azerbaijan’s upgraded Baku–Tbilisi–Kars railway is now in full operation after modernization, with annual freight capacity boosted to 5 million tons—another push for the Middle Corridor. Digital Trade Facilitation: Azerbaijan and Russia and Iran agreed to implement an “e-Permit” system for electronic road freight permits, aiming to cut paperwork friction in cross-border cargo flows. Forum Focus: The 2nd Caspian International Transport, Transit and Logistics Forum opened in Baku under TransLogistica Caspian, with heavy emphasis on digitalization, AI, and smarter corridor management to improve efficiency and reliability. Energy Cooperation: At Baku Energy Week, Azerbaijan’s energy minister met German business leaders to discuss natural gas, renewables, hydrogen, storage, and electricity infrastructure; the EU also reiterated its priority on renewable links and interconnectors with Azerbaijan for energy security. Exports & Industry: Azerbaijan’s non-oil exports hit $1.1bn in Jan–Apr 2026, with gold and petrochemicals up; cotton fiber exports reached $93.4m (68,400 tons). Agriculture & Climate: A new global assessment warns extreme heat is already constraining farm labor and cutting yields—raising stakes for food security. Culture & Heritage: The third Kelaghayi Festival brought the traditional silk headscarf to life in Sumgait, reinforcing Azerbaijan’s cultural branding.

Rail & Logistics: The upgraded Baku–Tbilisi–Kars (BTK) railway has entered full operation after modernization on Georgia’s section, boosting annual freight capacity to 5 million tonnes and strengthening the Middle Corridor. Energy Diplomacy: Azerbaijan used Baku Energy Week to deepen ties with the EU, Ukraine and the U.S., including a first Azerbaijan–U.S. Economic Dialogue co-chaired by Economy Minister Mikayil Jabbarov and U.S. Assistant Secretary Caleb Orr, with talks spanning energy security, critical minerals, transport/logistics and digitalization. Oil & Gas Operations: bp and SOCAR are consolidating Caspian marine seismic data into a unified database to close exploration gaps, while bp also moves toward transferring BTC pipeline management to SOCAR from July 1. Industry Decarbonization: SOCAR signed a cooperation agreement with BCG to accelerate methane emissions abatement across the Caspian region. Trade & Investment: Azerbaijan discussed economic diversification with the World Bank, and Deputy PM Samir Sharifov visited Belarus’s “Made in Azerbaijan” trade house to promote food, textiles and industrial goods. Regional Connectivity: Azerbaijan reiterated its role as an energy bridge linking Central Asia, the South Caucasus, Türkiye and Europe through cross-border interconnectors and corridors.

Energy Corridor Moves: BP is set to transfer management of the Baku–Tbilisi–Ceyhan (BTC) pipeline to SOCAR from July 1, keeping the project’s role as a key Caspian-to-Mediterranean export route. Rail & Logistics Boost: The upgraded Baku–Tbilisi–Kars (BTK) railway has entered full operation, with capacity rising from 1 mln to 5 mln tons/year and container traffic nearly sixfold in 2025—strengthening the Middle Corridor for China–Europe freight. Caspian Exploration Push: bp and SOCAR are consolidating marine seismic data in Azerbaijan’s Caspian sector to close exploration gaps and speed up future offshore work. Gas Supply Expansion: SOCAR and BOTAŞ signed an Absheron phase-two gas sales deal, targeting first gas in 2029 and boosting regional exports. Power Market Rules: AREA called for harmonized electricity market regulations across Central Asia and the South Caucasus to unlock cross-border renewable trade. Policy & Stability: An IMF paper warns central bank independence gaps could worsen inflation risks amid energy and food shocks.

Energy Diplomacy at Baku Energy Week: Azerbaijan used Baku Energy Week to push wider regional energy corridors, with President Ilham Aliyev reiterating that the Zangezur Corridor “will definitely be built,” while ministers and partners focused on scaling oil, gas and power links across the South Caucasus and beyond. Gas & Power Deals: SOCAR and partners signed major Absheron gas sales arrangements for long-term supply to Turkey, and bp started first commercial non-associated gas production from the ACG field, sending gas to Sangachal via existing offshore infrastructure. Electricity Interconnections: Turkey’s energy minister said the region is working on an electricity version of TANAP linking Azerbaijan, Georgia, Türkiye and Bulgaria, with potential future reach toward Central Asia; Georgia also marked the upgraded BTK railway commissioning for Middle Corridor freight. Industry & Trade Partnerships: Azerbaijan and the US discussed energy security and the TRIPP project ahead of the first Azerbaijan–US economic dialogue, while SOCAR met major firms (TotalEnergies, Shell, ExxonMobil) on cooperation prospects. Tourism Push: The Azerbaijan Tourism Board opened a Beijing office, targeting China’s fast-growing outbound market and boosting destination visibility.

Baku Energy Week Diplomacy: President Ilham Aliyev used the opening of the 31st Baku Energy Forum to stress Azerbaijan’s role in both fossil and green transitions, while also welcoming a U.S. delegation led by Caleb Orr and pointing to the first Azerbaijan–U.S. Economic Dialogue. Gas Deals for Regional Security: SOCAR, BOTAŞ, TotalEnergies and ADNOC signed a 15-year agreement to supply 33 bcm of Absheron gas to Türkiye from 2029, and Türkiye–Azerbaijan gas deliveries to Syria were highlighted as supporting reconstruction and stability. Electricity Corridors Take Shape: Alparslan Bayraktar said Türkiye plans an “electricity version of TANAP,” and feasibility work continues on the Central Asia–Azerbaijan energy corridor (study due May 2027). EU Connectivity Focus: The European Commission framed Azerbaijan as a key partner in its Central Asia connectivity strategy, linking energy trade, regulatory alignment and electrification. Power Projects in the Region: EPS and SOCAR signed cooperation terms for a gas-fired power plant in Serbia’s Nis (up to 500 MW by 2030). Transport & Industry Link: The Baku–Tbilisi–Kars railway is set to start operations June 2, boosting freight capacity and logistics for Eurasian trade.

Azerbaijan–Algeria Energy Ties: President Tebboune ratified an MoU with Azerbaijan to expand cooperation in oil, gas, petrochemicals and green-energy projects, with SOCAR set to supply long-term crude volumes and LNG-related collaboration. Baku–US Economic Dialogue: Azerbaijan will host the first Azerbaijan–U.S. Economic Dialogue on June 2 during Baku Energy Week, covering trade, industry, transit, energy security, AI and digital infrastructure, with deals expected. Karabakh Reconstruction Investment Push: The Karabakh Revival Fund and Azerbaijan’s presidential representative held a business meeting in Jabrayil, Gubadli and Zangilan to attract investors and highlight public-private opportunities in priority sectors. Digital Infrastructure: Azerbaijan plans a National Supercomputer Center in 2026 to boost domestic high-performance computing and support AI development. Customs Cooperation: An Uzbekistan customs delegation met U.S. officials to expand cooperation on risk management, anti-smuggling and border modernization. Space Weather Watch: Shamakhi Astrophysical Observatory issued a forecast after mostly C-class solar activity and noted elevated geomagnetic conditions.

Reconstruction & Investment in Karabakh: The Karabakh Revival Fund and Azerbaijan’s presidential special representative launched a business meeting in Jabrayil, Gubadli and Zangilan to pitch investment opportunities across priority sectors, with government, donors and leading companies discussing public-private cooperation. US-Azerbaijan Economic Push: Ahead of Baku Energy Week, Azerbaijan and the US will hold the first Azerbaijan-US Economic Dialogue on June 2, covering trade, industry, energy security, transit, AI and digital infrastructure, with business sessions and expected documents/contracts. Digital Infrastructure: Azerbaijan plans a National Supercomputer Center in 2026 under its digital development agenda to boost domestic processing of large datasets, support AI and reduce reliance on foreign computing. Energy Logistics Watch: Kazakhstan is weighing the Baku–Supsa pipeline as an export option, while noting no formal proposal has yet been received from Azerbaijan—highlighting the South Caucasus’ growing role in Eurasian energy routes. Middle Corridor Momentum: China is set to increase freight to Europe via the Trans-Caspian route through Kazakhstan, the Caspian, Azerbaijan, Georgia and Turkey, with volumes rising and major rail and port investments planned. Tech & Skills: The State Examination Center will hold a professional recognition exam on June 16 in an electronic, computer-based format for multiple specialties. Space Weather: Shamakhi Astrophysical Observatory issued a forecast showing mostly C-class solar flares with elevated solar wind and active geomagnetic conditions expected. Local Industry & Culture: Khankandi’s tea and coffee festival wrapped up with fireworks, spotlighting local producers and boosting community tourism.

Battery Recycling Regulation: China plans tougher rules for electric-vehicle battery recycling, targeting illegal disposal and low-quality processing, and will use digital tracking across the battery supply chain as retired volumes could top 1m tons annually by 2030. Armenia Trade Friction: Russia has imposed temporary restrictions on Armenian fruit and vegetables (including tomatoes, cucumbers, strawberries) over phytosanitary issues, signaling renewed pressure in the run-up to June 7 elections. South Caucasus Diplomacy: Russia recalled its ambassador to Armenia for consultations after Putin warned Yerevan against EU alignment, while Moscow also urged a referendum on EU vs EAEU membership. Energy & Transit Cooperation: The U.S. reiterated support for Turkmen gas exports via the Trans Caspian direction to Azerbaijan, reinforcing the corridor logic behind Caspian-Black Sea-Europe energy routes. Azerbaijan-Europe Link: Dutch special envoys will visit Azerbaijan for Baku Energy Week to discuss connectivity, energy, and Middle Corridor logistics, underlining growing European engagement with Azerbaijan as a hub. Mining & Production: Anglo Asian Mining says 2025 was a turnaround, expanding into multi-asset copper and gold production in Azerbaijan and reinstating dividends. Tourism Push: Azerbaijan Tourism Board opened a Beijing office and promoted Azerbaijan at ITB China, reporting near 9.5% growth in Chinese arrivals in early 2026.

Energy Transit Watch: Kazakhstan’s energy minister says there’s “no alternative” to the CPC pipeline for most oil exports, but Kazakhstan is open to considering extra routes like Baku–Supsa if they make economic sense—while noting no official talks with Azerbaijan yet. Azerbaijan–Europe Energy Move: BP is set to take over operatorship of Azerbaijan’s offshore Babek gas field under an SOCAR deal expected to be announced on 1 June, signaling deeper Western involvement in Azerbaijan’s gas portfolio. Trade & Logistics: New Georgia–Azerbaijan agreements reportedly cover long-term electricity supply and gas purchase extensions, plus restored Tbilisi–Baku rail service and claims about BTK railway operations—raising questions in Georgia about energy security and transparency. Tourism Push: Azerbaijan Tourism Board opened a representative office in Beijing and highlighted growing Chinese arrivals, up nearly 9.5% in Jan–Apr 2026. Industry & Jobs: Azerbaijan’s agribusiness push continues with new initiatives for seeds, procurement, and crop protection systems, alongside a broader state program for agriculture development.

SOCAR-BP Gas Deal: BP will take over as operator of Azerbaijan’s Babek offshore gas field, with SOCAR and BP set to announce the agreement on June 1; the project is estimated at ~400 bcm gas and 80 mln tonnes condensate. Oil Market Watch: Azeri Light slid on global oil weakness tied to demand concerns, adding pressure to regional energy revenues. Industrial Jobs in Karabakh: GP Safety LLC started work gloves production in Khankendi, investing 3.5 mln manat for 25 mln pairs/year capacity, with plans to expand exports to Europe. Textiles in Khojaly: “Garabagh Textile House” LLC opened in Khojaly using Turkish and Chinese equipment, targeting 1.4 mln home-textile items annually, hiring 85 now with training for more. Energy Corridor & Exports: Kazakhstan is evaluating the Baku–Supsa pipeline as an export option; Azerbaijan and Georgia agreed to restart operations in May 2026. Middle Corridor Digitalization: Azerbaijan is pushing a digital ecosystem for faster, more predictable customs and cargo tracking across the Middle Corridor. Baku Logistics Events: TransLogistica Caspian will return to Baku, spotlighting transport and logistics capacity building. Trade & Infrastructure Diplomacy: Azerbaijan–Netherlands Chamber of Commerce was officially established in The Hague to boost bilateral business, investment, and knowledge exchange.

Textile & Jobs: Azerbaijan’s “Garabagh Textile House” LLC was inaugurated in Khojaly, set to produce 1.4 million textile items a year using Turkish and Chinese technologies, with 85 permanent jobs now and plans to expand to 200 plus garment manufacturing. Energy & Industry Diplomacy: SOCAR President Rovshan Najaf met Italy’s energy and enterprise ministers in Rome and formally presented SOCAR Italia after SOCAR’s acquisition of shares in Italiana Petroli—another step in expanding Azerbaijan–Italy energy cooperation. Infrastructure in the liberated territories: President Ilham Aliyev inspected restoration progress in Shusha’s Boyuk Galaderesi village, including power, gas, water, and communications works to support returning residents. Armenia–Russia trade pressure: Russia’s Rosselkhoznadzor announced temporary restrictions on Armenian fruit and vegetables from May 30, citing alleged quality and safety violations amid wider EU-alignment tensions. Regional energy corridors: Armenia’s PM Nikol Pashinyan reiterated plans for a transit gas pipeline through Armenia tied to TRIPP and other connectivity projects. Pharma compliance: GM PHARMA hosted an Azerbaijani GMP inspection at its EU-GMP compliant facility, supporting its expansion and planned exports to Azerbaijan. Independence Day outreach: Azerbaijan marked May 28 Independence Day with events abroad, including Oslo, where a jazz program highlighted cultural ties with Norway.

Industrial Light Manufacturing: President Ilham Aliyev inaugurated the “Garabagh Textile House” LLC in Khojaly, a 1.4m-items/year facility using Turkish and Chinese equipment, creating 85 jobs now and targeting 200 later as garment production ramps up. Industrial Expansion & Mining: “AzerGold” began work to take over and develop non-metallic limestone and sand-gravel deposits under a presidential decree, setting up an internal task force and starting phased exploration and site assessments. Energy & Corporate Diplomacy: SOCAR President Rovshan Najaf met Italy’s energy and industry ministers in Rome, highlighting SOCAR’s Italy expansion and the presentation of SOCAR Italia during Independence Day events. Local Infrastructure for Returnees: Aliyev inspected restoration in Shusha’s Boyuk Galaderesi, including power upgrades, a new gas pipeline, drinking-water works, and ongoing communications installation. Pharma Quality Compliance: GM PHARMA hosted a GMP inspection by Azerbaijan’s regulatory authority at its EU-GMP-aligned plant, supporting planned exports to Azerbaijan. Trade & Logistics Outlook: Kazakhstan said container traffic on the Middle Corridor is set to rise to 10m tons by 2030, reinforcing the Baku-linked route for regional freight.

Mining Output: Azerbaijan’s mining industry posted production worth 12.5 billion manats in January–April, with 8.8 million tons of marketable crude oil and 13 bcm of natural gas, plus a sharp jump in copper concentrate output. TRIPP Corridor: Armenia’s PM Nikol Pashinyan says the TRIPP connectivity plan will reopen the Meghri railway and add new transport links, while the U.S.-Armenia framework is set to be finalized within a month. Energy Pressure on Armenia: Russia warns it could suspend or terminate discounted gas, oil products and rough diamonds if Armenia continues moving toward the EU, escalating tensions ahead of June 7 elections. Azerbaijan–China Diplomacy: In New York, Azerbaijan’s FM Jeyhun Bayramov met China’s Wang Yi, discussing expanding cooperation across trade, transport, energy, green development, digital transformation and agriculture. Azerbaijan–Portugal Talks: Bayramov also met Portugal’s Paulo Rangel on energy security and broader economic and green energy cooperation. Agriculture Policy: Azerbaijan’s agrarian sector gets a boost via a new 2026–2030 state program aimed at boosting competitiveness, productivity, and food security. Azerbaijan–Baku Logistics: AZAL plans Shymkent–Baku flights starting June 16, supporting regional travel and business links.

Agriculture Policy Push: Azerbaijan’s agrarian sector is entering a “new stage” after President Ilham Aliyev’s remarks and the approved 2026–2030 state program aimed at boosting competitiveness, shifting to intensive farming, and strengthening food security through higher productivity and better quality. Startup Finance: Azerbaijan will launch a unified digital financial platform for startups and MSMEs under a 2027–2030 inclusion program, simplifying access to concessional lending and state-backed support via one digital system. China Trade & Logistics: Azerbaijan-China trade turnover rose over 30% in the first quarter, with officials highlighting energy transition tech and Azerbaijan’s role as a logistics hub across East-West and North-South corridors. Textile Production Talks: AZPROMO met a Chinese cross-border e-commerce association to explore textile production in Azerbaijan and export-oriented “Made in Azerbaijan” projects. Regional Connectivity by Air: AZAL will start Shymkent–Baku direct flights on June 16 (twice weekly), with KMG-Aero providing international-standard refueling services. Middle Corridor Shipping Demand: A new report flags growing Caspian Sea cargo needs along the Middle Corridor and the shipping capacity challenge as volumes keep climbing. Azerbaijan-Armenia Trade Thaw: Azerbaijan exported construction-related goods to Armenia, including extruded polystyrene insulation panels, as normalization shows up in practical cross-border commerce. Housing Agenda at WUF13: The Baku Call to Action was released, urging stronger action on the global housing crisis and safer, more resilient urban systems.

Middle Corridor Push: Kazakhstan’s rail operator KTZ plans $10bn in freight infrastructure by 2030 to handle surging China–Europe cargo, betting on the Trans-Caspian route via Georgia, Azerbaijan and Turkey and even earmarking $100m+ for six vessels, including ships built at Azerbaijan’s Baku Shipyard. Azerbaijan–Pakistan Ties: In New York, Azerbaijan’s FM Jeyhun Bayramov and Pakistan’s FM/Deputy PM Ishaq Dar agreed to deepen strategic cooperation across trade, energy, transport and defense, with both sides stressing UN Charter principles and a stronger Global South voice. Trade Signals: Azerbaijan reported a rare direct export to Armenia—1.497 tonnes of construction insulation boards—after customs clearance, a small but symbolic step amid broader connectivity talks. Corporate Watch: Anglo Asian says its AIM listing is “regularly reviewed” as it returns to profit and targets a major copper output jump, while keeping an eye on where to list next. Diplomacy & Culture: Leyla Aliyeva toured Lankaran’s “Yashil Chay” ecological tea farm, highlighting local production and agritourism potential.