While Azerbaijan's oil production jumped to 32.2 million metric tons in 2022, a surge powered by massive fields and billions in investment, the nation's industrial muscle is flexing far beyond its energy sector, from booming manufacturing and mining to a transformative construction drive.
Key Takeaways
- In 2022, Azerbaijan's oil production reached 32.2 million metric tons, a 4.5% increase from the previous year
- Azerbaijan's proven natural gas reserves stood at 1.9 trillion cubic meters as of 2023, ranking 7th globally
- The Shah Deniz gas field produced 16 billion cubic meters of gas in 2022, accounting for over 50% of national output
- Manufacturing sector GDP share was 5.2% in 2022
- Food processing industry output grew 12% to 4.5 billion AZN in 2022
- Cotton yarn production reached 15,000 tons in 2023
- Iron ore processing capacity 1 million tons/year Azersu
- Gold production reached 2.5 tons in 2022 from Chovdar mine
- Copper concentrate output 15,000 tons in 2023
- Construction sector GDP share was 7.8% in 2022
- Building permits issued for 15 million sqm residential in 2023
- Highway construction totaled 1,200 km new roads in 2022
- Chemical industry output grew 18% to 2.8 billion AZN in 2022
- Polymer production reached 250,000 tons polyethylene in 2023
- Fertilizer output 150,000 tons nitrogen-based in Sumgait 2022
Azerbaijan's industrial growth is driven by robust oil and gas production and exports.
Chemicals and Petrochemicals
- Chemical industry output grew 18% to 2.8 billion AZN in 2022
- Polymer production reached 250,000 tons polyethylene in 2023
- Fertilizer output 150,000 tons nitrogen-based in Sumgait 2022
- Detergent manufacturing 50,000 tons in 2023
- Paint and varnish production 30,000 tons Baku Paint Factory 2022
- Synthetic rubber output 20,000 tons from Oil Refinery 2023
- Soda ash production 100,000 tons Baku Soda Plant 2022
- Tires manufacturing 1 million units by Sumgait Rubber 2023
- Pesticides production 5,000 tons for agriculture 2022
- Polypropylene plant capacity 200,000 tons/year commissioned 2021
- Methanol production planned 1 million tons by 2025 SOCAR
- Caustic soda output 40,000 tons Baku Chlorine 2022
- Adhesives manufacturing 10,000 tons industrial use 2023
- Explosives for mining 2,000 tons produced 2022
- Linear alkyl benzene for detergents 15,000 tons 2023
- Investment in petrochemicals $1.5 billion 2022-2026 plan
- Sulfuric acid production 50,000 tons for fertilizers 2022
- Essential oils extraction 500 tons from plants 2023
- Resin production 8,000 tons synthetic 2022
- Solvents manufacturing 12,000 tons organic 2023
Chemicals and Petrochemicals Interpretation
Beneath the surface of its energy wealth, Azerbaijan is methodically assembling the chemical building blocks of a modern economy, from the fertilizers that feed its fields to the polymers that shape its products, proving that an oil giant can also have a deft touch in the petrochemical lab.
Construction Sector
- Construction sector GDP share was 7.8% in 2022
- Building permits issued for 15 million sqm residential in 2023
- Highway construction totaled 1,200 km new roads in 2022
- Residential construction volume 12 million sqm in Baku 2023
- Investment in construction reached 10 billion AZN in 2022
- Bridge construction projects 50 new bridges over 2022-2023
- Industrial facilities constructed 20 new plants in 2023
- Housing starts up 15% to 50,000 units in 2022
- Pipeline construction for gas 500 km in liberated territories 2023
- Airport expansions invested $500 million Heydar Aliyev 2022
- Metro line extension 5 km added in Baku 2023
- Hotel construction 10 new 4-star hotels in Ganja region 2022
- Water infrastructure projects 300 km pipelines built 2023
- Power plant construction 500 MW capacity added 2022
- School buildings 100 new constructed post-2020 war 2023
- Office space construction 2 million sqm in Sumgait 2022
- Railway modernization 400 km tracks upgraded 2023
- Hospital construction 20 facilities with 5,000 beds 2022-2023
- Sports facilities 15 stadiums built for 2024 events
- Irrigation canals 200 km constructed in Karabakh 2023
- Shopping mall developments 5 new centers 500,000 sqm 2022
Construction Sector Interpretation
Azerbaijan's construction sector, contributing a robust 7.8% to GDP, is clearly not just laying bricks but ambitiously rebuilding its foundations, from housing and highways to hospitals and hotels, stitching the nation together with concrete and steel.
Manufacturing Output
- Manufacturing sector GDP share was 5.2% in 2022
- Food processing industry output grew 12% to 4.5 billion AZN in 2022
- Cotton yarn production reached 15,000 tons in 2023
- Cement production totaled 2.1 million tons in 2022, up 5%
- Steel production was 150,000 tons from Azersu Steel in 2023
- Tobacco manufacturing output value 500 million AZN in 2022
- Textile exports reached $200 million in 2023, mainly carpets
- Machinery and equipment manufacturing grew 8% in 2022
- Pharmaceutical production value 300 million AZN in 2023
- Beverage industry produced 150 million liters of non-alcoholic drinks in 2022
- Furniture manufacturing output 250 million AZN in 2022
- Leather goods production 10,000 tons in 2023
- Electrical equipment manufacturing up 10% to 400 million AZN
- Paper and cardboard production 80,000 tons in 2022
- Non-metallic minerals manufacturing GDP contribution 1.2 billion AZN
- Automotive assembly produced 5,000 vehicles in 2023 by Khazar plant
- Dairy processing output 500,000 tons milk equivalent in 2022
- Glass production 120,000 tons in Sumgait Glass Factory 2023
- Plastic products manufacturing 200,000 tons in 2022
- Meat processing industry output 50,000 tons in 2023
- Carpet weaving employed 20,000 workers, output $150 million
- Chemical fertilizers production 100,000 tons in 2022
- Jewelry manufacturing exports $50 million in 2023
- Canning industry produced 300,000 tons fruits/veg in 2022
- Wood processing output 50,000 cubic meters in 2023
- Electronics assembly started with 1 million units smartphones in 2023
- Rubber products production 20,000 tons tires in 2022
- Printing industry output 10 billion pages in 2023
- Gold jewelry production 5 tons in 2022
Manufacturing Output Interpretation
While manufacturing accounts for a modest 5.2% of GDP, Azerbaijan’s industrial heart beats to a diverse rhythm, from carpets and cans to steel and smartphones, stitching together a surprisingly broad tapestry of tangible, if not yet dominant, output.
Mining and Minerals
- Iron ore processing capacity 1 million tons/year Azersu
- Gold production reached 2.5 tons in 2022 from Chovdar mine
- Copper concentrate output 15,000 tons in 2023
- Alumino-silicate mining production 500,000 tons in 2022
- Gypsum extraction totaled 300,000 tons Dashkasan in 2023
- Cobalt mine in Azerbaijan produced 200 tons concentrate 2022
- Limestone quarrying output 10 million tons for cement in 2022
- Polymetallic ores mined 50,000 tons Gizeh deposit 2023
- Bentonite clay production 100,000 tons Sheki region 2022
- Perlite mining output 20,000 tons Dashkesen 2023
- Salt extraction from Caspian 150,000 tons annually
- Quartz sand production 80,000 tons Neftchala 2022
- Iron ore reserves estimated at 500 million tons Dashkasan
- Chromite deposits in Goygol mined 5,000 tons 2023
- Zeolite mining production 30,000 tons Agsu 2022
- Marble quarrying output 50,000 cubic meters Istisu 2023
- Coal production 1.5 million tons from local mines 2022
- Molybdenum concentrate 1,000 tons from Gadabey 2023
- Dolomite extraction 200,000 tons for steel 2022
- Basalt mining 100,000 tons Absheron 2023
Mining and Minerals Interpretation
While Azerbaijan’s industrial landscape glitters with gold and is propped up by iron, its true foundation is the less glamorous but indispensable mountain of salt, gypsum, and basalt being methodically carved into economic resilience.
Oil and Gas Production
- In 2022, Azerbaijan's oil production reached 32.2 million metric tons, a 4.5% increase from the previous year
- Azerbaijan's proven natural gas reserves stood at 1.9 trillion cubic meters as of 2023, ranking 7th globally
- The Shah Deniz gas field produced 16 billion cubic meters of gas in 2022, accounting for over 50% of national output
- Azerbaijan's crude oil exports amounted to 28.5 million tons in 2023, primarily to Italy and Turkey
- SOCAR, the state oil company, invested $2.5 billion in upstream oil projects in 2022
- Absheron gas field development aims for 5 billion cubic meters annual production by 2025
- Oil refinery capacity in Azerbaijan totals 14 million tons per year across Baku, Sumgait, and Heydar Aliyev plants
- Natural gas production hit 19.8 billion cubic meters in 2022, up 8% YoY
- Azeri-Chirag-Gunashli (ACG) field produced 12.5 million tons of oil in 2023
- Gas exports via South Caucasus Pipeline reached 11 billion cubic meters in 2023 to Georgia and Turkey
- LNG exports from Azerbaijan were negligible, but Shah Deniz condensate exports were 2.1 million tons in 2022
- Upstream investment in oil and gas sector was $3.1 billion in 2021
- Karabakh oil field contributes 1.2 million tons annually to production
- TANAP pipeline capacity is 16 billion cubic meters per year, transporting gas to Europe via TAP
- Oil production from new wells in 2023 added 500,000 tons to total output
- Gas flaring in Azerbaijan reduced to 0.5% of production in 2022
- SOCAR's exploration drilling reached 150,000 meters in 2022
- Umid gas field production started at 1 billion cubic meters annually in 2023
- Baku-Tbilisi-Ceyhan pipeline transported 30 million tons of oil in 2022
- Proven oil reserves are 7 billion barrels as of 2023
- Non-oil gas production grew 15% to 4.5 billion cubic meters in 2022
- SOCAR's petrochemical investments totaled $1.2 billion in 2023
- Oil spill incidents reduced by 20% in Caspian Sea operations in 2022
- Deepwater Gunashli platform produces 100,000 barrels per day
- Gas to Europe via TAP was 8.1 billion cubic meters in first year 2021
- Reserves-to-production ratio for gas is 30 years at current rates
- Oil services sector employed 25,000 workers in 2022
- Jack-up rig utilization in Caspian was 85% in 2023
- Seismic surveys covered 10,000 sq km in 2022
- Condensate production was 3.2 million tons in 2022
- In 2022, Azerbaijan's oil production was 629,000 barrels per day
- Natural gas production averaged 20.5 billion cubic meters in 2022
Oil and Gas Production Interpretation
While Azerbaijan's economic engine still runs on the robust, oily cadence of its fossil fuel present, it is simultaneously, and perhaps wisely, learning to hum a few bars of a more diversified industrial tune for the future.
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