5 THE SOUTH CAUCASUS-CENTRED TRANSPORT HUB: THE CROSSROADS OF THE EAST-WEST AND THE NORTH-SOUTH CORRIDORS Azerbaijan at a crossroads: Te Europe – South Caucasus – Asia energy nexus Diana Szoke and Zoltan Egeresi Acronyms ACG Azeri-Chirag-Gunashli oil feld complex BP British Petroleum BTC Baku-Tbilisi-Ceyhan oil pipeline BTE Baku-Tbilisi-Erzurum gas pipeline IEA International Energy Agency LNG liquefed natural gas OPEC Organization of the Petroleum Exporting Countries SGC Southern Gas Corridor SOCAR State Oil Company of the Azerbaijan Republic SOFAZ State Oil Fund of Azerbaijan Introduction From the perspective of the international oil and gas markets, we are living in exciting times: the global energy landscape is undergoing a game-changing transformation, and several long-held tenets of the petroleum business are consequently changing. Lower hydrocarbon prices, the weakening of the Organization of the Petroleum Exporting Countries’ (OPEC’s) bargaining power and the rise of unconventional hydrocarbon production are just some of the major shifs we have witnessed over the past decade. Most recently, we are also facing a new geopolitical reality following the easing of sanctions against Iran, with yet uncertain implications for international markets.