OSLO GROUP ON ENERGY STATISTICS HELSINKI FINLAND 23

OSLO GROUP ON ENERGY STATISTICS HELSINKI, FINLAND, 23 -26 OCTOBER 2012 Azerbaijan’s experience in making Energy balance Rauf Gurbanov, Head of the unit on Energy statistics of the Statistical Committee of the Republic of Azerbaijan raufg@azstat. org 1

Brief history First decisions for improvement of energy statistics (2006 -2007) National methodology and recommendations on energy statistics (2007 -2012); National recommendations on energy statistics indicators (2007, 2009, 2010); Improvement of questionnaires according to energy balance (Eurostat, IRES) (2007 -2012); Creating of model of energy balance (on the base of Eurostat from 2007 up to 2010), (since 2011 IRES); Agreement structure of balance with all relation government organizations, IEA and adaptation (2007 -2008); Compilation energy balance (2008); Publication new energy balance (2008); 2

Step by step for implementation new structure Submitted to Cabinet Ministries (December, 2007) Agreement structure of balance with all relation government organization (December, 2007) Reference from IEA, seminars, discussion, creating of working group (2007 -2008) Creating of model of energy balance on the base of Eurostat ( February, 2007) Learning of structure of balance of IEA and Eurostat (2006 -2007) 3

Text 1 for chapter 5. . . Previous structure of Energy Balance Bad practice – wrong way Some countries, especially former soviet union countries, also Republic of Azerbaijan fuelenergy balance has been compiled once in every 5 years. Since 1930, commodity balances of main energy products (oil, gas, electricity) and once in every 5 years from 1950 to 1990 fuelenergy balance were published. After gaining of the independence by the Republic of Azerbaijan there was published fuel-energy balance based on old structure from 1991 to 2007. Old structure of the energy balance is given below: Item 1. 1. 1 1. 2 1. 3 2. 2. 1. 1 2. 1. 2 2. 3 2. 4 Balance items Resources Extraction (production) Import Stock at the beginning of year Distribution Consumption inside of the country including: 12 rows conversion into other type of energy production–technological and other needs Losses Export Stock at the end of year 4

Example previous Energy Balance with data 5. 21 Fuel-energy balances in 2006 (thousand ton conditional fuel) Resources Stock to the beginning of the year Production (extraction) Import 76 643 Natural fuel Other including: kind of crude oil, natural other fuelincluding gas total energy gas resources condensat e 60 733 46 981 13 720 32 15 910 2 593 68 483 5 567 1 842 53 745 5 146 838 46 143 - 997 7 583 5 140 7 19 6 751 14 738 421 Distribution Domestic consumption conversion of energy (electricity and heating) as raw material other needs Losses Export Stock to the end of the year 76 643 32 786 60 733 22 475 46 981 10 799 13 720 11 654 32 22 15 910 10 311 7 993 11 899 12 894 1 413 40 054 2 390 6 058 11 082 5 335 934 35 568 1 756 10 705 94 219 35 493 470 6 058 377 5 219 715 75 1 276 22 10 1 935 817 7 559 479 4 486 634 Fuelenergy resourcestotal 5

Text 1 for chapter 5 (cont’d) Continuation of the text 1. Bad practice – wrong way The shortages of the previous energy balance are following: - there is a no analog of this balance in the international sphere, as well as lack of transformation sector, re-accounting of data, incorrect accounting of the consumption of energy products between sectors, nonapplication of consumption principle on several consumption groups, incomplete coverage of energy products, lack of commodity balance conversion factors (TOE) applied in international practice, and above all non-calculation of the “statistical difference” indicator characterizing energy balance data quality. On other hand - previous balance was only data flows, but not energy flows. 6

Energy balance: Purposes Enhance the relevance of energy statistics by providing comprehensive and reconciled data on the energy situation on a national territory basis; Provide comprehensive information on the energy supply and demand on the national territory in order to understand the energy security situation, the effective functioning of energy markets and other relevant policy goals, as well as to formulate energy policies; Serve as a quality tool to ensure completeness, consistency and comparability of basic statistics; Ensure comparability between different reference periods and between different countries; Provide data for estimation of CO 2 emissions with respect to national territory; Provide the basis for indicators of the energy’s role in the country’s economy; Calculate efficiencies of transformation processes occurring in the country (e. g. , refining, electricity production by combustion of fuels, etc. ); Calculate the relative shares of the supply/consumption of various products (including renewable versus non-renewable) of the country’s total supply/consumption; Provide an input for modeling and forecasting. 7

Text 2 for chapter 5 Best practice Since 2008 - the energy balance based on international standards (within the framework of recommendations of IEA and Eurostat). The energy balance published in 2011 was compiled on the basis of IRES requirements prepared by Oslo Group and adopted in 42 nd session of the UN Statistical Commission. The SSC has adopted the format of the energy balances contained in IRES for the national energy balances and presents information on 23 types of products and 5 product groups. The availability of detailed energy balances has fostered transparency; it has allowed for the assessment and monitoring of the energy sector and it has provided information on the structure of the consumption of energy products. It has overall provided policy makers with necessary statistical information for decisions making and policy planning. SSC compiles energy balances annually and publishes them in the annual publication “Energy balance of Azerbaijan” available online at www. azstat. org. 8

Energy balance of Azerbaijan Energy balance in 2011 Total all products Primary production Import Export International bunkers International marine bunkers International aviation bunkers Stocks changes Total energy supply Statistical difference Transfers Transformation processes Electricity plants CHP plants Heat plants Gas works Blast furnaces Oil refineries Petrochemical plants Other transformation processes Energy industries own use Losses Final consumption Final energy consumption Industry and construction Iron and steel Chemical and petrochemical Non-ferrous metal Non-metallic minerals Transport equipment Machinery Mining and quarrying Food and tobacco Paper, pulp and print Wood and wood products Textile and leather Construction Non-specified Transport Road Rail Domestic aviation Domestic navigation Pipeline transport Non-specified Other fields of economy Agriculture, forestry and fishing Commerce and public services Households Not elsewhere-specified Non-energy use 62 541, 5 45, 3 -48 783, 5 -517, 2 -79, 2 -438, 0 308, 8 13 594, 9 257, 2 -3 160, 0 -1 623, 2 -1 219, 7 -47, 2 54, 0 -1, 4 -349, 0 26, 5 1 033, 1 1 235, 9 7 908, 7 7 290, 4 949, 0 64, 7 236, 3 3, 9 194, 7 8, 3 24, 3 19, 5 237, 5 1, 2 2, 2 8, 5 127, 6 20, 3 1 984, 7 1 789, 3 44, 2 106, 5 35, 3 9, 4 4 356, 7 428, 0 519, 5 3 409, 2 618, 3 thousand TOE Crude oil Refinery Petrofeedleum Refinery stocks products, gas total 46 949, 4 -40 160, 5 -60, 9 6 728, 0 150, 7 -6 521, 0 8, 6 47, 7 - - 26, 5 -2 193, 2 -517, 2 -79, 2 -438, 0 23, 5 -2 660, 4 72, 2 6 177, 5 -4, 7 -81, 4 -1, 3 66, 4 6 172, 0 26, 5 429, 0 3 015, 9 2 430, 1 87, 2 2, 2 0, 3 0, 9 1, 3 0, 1 0, 7 6, 2 12, 5 0, 1 0, 4 62, 1 0, 4 1 934, 0 1 789, 3 2, 8 106, 5 35, 3 0, 1 408, 9 337, 2 9, 2 62, 5 585, 8 248, 6 - LPG -123, 9 -1, 7 -125, 6 4, 3 283, 0 34, 5 248, 5 153, 1 84, 7 6, 8 0, 1 0, 6 5, 7 0, 1 26, 0 0, 1 51, 8 0, 2 3, 4 48, 2 68, 4 Motor Kerosen gasoline e - type jet fuel 1, 0 -99, 6 -26, 5 -125, 1 28, 8 1 337, 0 1 183, 1 1 170, 6 12, 5 11, 5 1, 0 - -81, 3 -438, 0 -13, 2 -532, 5 640, 7 108, 2 106, 5 1, 7 of which: Natural gas Other Diesel Fuel oil - Bitumen Other kerofuel low petroleum sene sulphur products 0, 3 0, 1 - -1 384, 9 -79, 2 0, 1 -6, 4 0, 4 -1 470, 4 29, 6 0, 3 2 527, 9 -2, 6 0, 3 2 530, 5 0, 3 0, 7 1 027, 6 0, 7 1 026, 8 0, 1 55, 0 0, 1 0, 1 5, 6 4, 1 0, 3 44, 5 0, 1 630, 1 592, 7 2, 1 35, 3 0, 6 341, 7 325, 3 0, 1 3, 6 0, 5 12, 8 0, 8 -216, 3 94, 7 -121, 6 0, 4 172, 8 -2, 1 -81, 4 -1, 3 257, 6 19, 2 31, 6 28, 3 25, 3 2, 1 0, 9 1, 2 0, 5 7, 8 0, 1 11, 9 0, 2 0, 7 2, 3 0, 2 2, 1 3, 3 -19, 6 -8, 3 -27, 9 11, 0 259, 9 221, 0 25, 1 -267, 6 -15, 2 -257, 7 -1, 9 707, 3 31, 9 648, 9 26, 5 160, 9 290, 6 15 265, 2 -6 360, 6 345, 1 9 249, 7 23, 1 -4 439, 7 -2 529, 6 -1 774, 4 -123, 3 -12, 4 380, 1 832, 7 3 574, 1 3 545, 7 691, 2 31, 0 205, 8 2, 1 179, 5 7, 1 13, 7 6, 5 201, 7 0, 9 1, 7 3, 0 23, 3 14, 9 2 854, 5 26, 1 116, 2 2 712, 2 28, 4 Renewables 326, 9 -0, 2 326, 7 -230, 1 96, 6 0, 2 0, 1 0, 2 96, 2 1, 1 18, 5 76, 6 - Heat 109, 4 32, 0 77, 4 22, 1 13, 8 73, 5 0, 3 0, 0 0, 1 0, 0 73, 2 24, 1 49, 1 - Electricity 11, 0 -69, 2 -58, 2 11, 2 1 745, 3 1 141, 2 604, 1 193, 3 341, 7 1 140, 9 170, 1 31, 5 30, 2 0, 9 13, 9 1, 0 9, 8 6, 7 23, 2 0, 3 0, 4 5, 1 42, 1 5, 0 46, 9 37, 6 9, 3 923, 9 63, 6 351, 5 508, 8 - Other fuel products 7, 8 1, 3 9, 1 -1, 4 7, 7 3, 6 4, 1 9

Text 3 for chapter 5 Data sources and questionaries Data on production of energy products collected with monthly periodicity from large enterprises; quarterly from small enterprises; and annually from natural entities. Data on consumption of energy products collected with monthly from large enterprises, annually from small enterprises. with monthly periodicity from households (sample survey) Data on the sale of fuel are collected from legal and natural entities with monthly periodicity. Data on import-export are obtained from the State Customs Committee with monthly periodicity 10

Commodity balances Customary for Azerbaijan, commodity balances are compiled on 23 types of energy products Primary Products - 7: Crude oil, Natural bitumen and natural asphalt, Natural gas, Wood, Hydroenergy, Wind energy, Other fuel products (hard coal and etc). Secondary Products - 16: Refinery feed stock, Refinery gas; Oil products: LPG, Motor gasoline, Kerosene – type jet fuel, Other kerosene; Diesel fuel, Fuel oil-low sulphur, Fuel oil-high sulphur, Naphtha, Petroleum coke, Bitumen, Lubricants, Other petroleum products, Electric energy (EP working with fuel), Heat energy. 11

Conversion factors Commodity balances Conversion factors Energy balance 12

Text 4 for chapter 5 Net Calorific Values for some energy products in Azerbaijan Best practice Main important work that has been carried out in Azerbaijan was the identification of the country specific calorific values for the energy products. This was considered particularly important in order to reflect in the energy balances the higher calorific values of the energy products in the country. The SSC commissioned experts from the scientific institutions to identify the country specific calorific values. In particular, the Institute of Petrochemical Processes of the Academy of National Sciences of Azerbaijan carried out laboratory works and determined the calorific values of 23 energy products which are now used for the compilation of energy statistics and balances. 13

Net Calorific Values for some energy products in Azerbaijan Best practice № Kind of energy products Net Calorific Values (Gj/metric tons) By Azerbaijan Upper Lower By world Upper Lower 1. Crude oil 43, 1 45, 3 40, 1 44, 8 2. Gasoline 43, 2 46, 3 42, 5 44, 8 3. Aviation gasoline 43, 4 46, 5 42, 5 44, 8 4. Jet fuel 43, 2 46, 2 42, 0 44, 8 5. Diesel oil 42, 7 45, 5 41, 4 43, 3 6. Kerosene 43, 1 46, 1 42, 4 45, 0 7. Fuel oil (low-sulphur) 42, 5 45, 4 39, 8 41, 7 8. Fuel oil (high-sulphur) 41, 2 43, 8 39, 8 41, 7 9. Natural gas (cubic meter) 35, 9 38, 9 36, 0 39, 02 47, 4 52, 4 44, 8 52, 2 10. LPG 14

Thank you for attention! 15