SOCAR signs 10-year gas supply deal with Germany's SEFE

Azerbaijan’s state oil company SOCAR has signed a 10-year agreement to supply natural gas to Germany’s state-owned energy firm SEFE (Securing Energy for Europe), the companies said in a joint statement on Tuesday.

Under the deal, SOCAR will gradually increase annual gas deliveries to SEFE to 15 terawatt-hours (TWh), equivalent to roughly 1.5 billion cubic meters (bcm), to be delivered to European markets.

The agreement also foresees investments in production and transport infrastructure, including gas compressors, aimed at enhancing Europe’s access to pipeline gas and strengthening energy security across the continent.

“This long-term contract is a testament to the strong relationship between Germany and Azerbaijan,” said Dr Egbert Laege, CEO of SEFE. “With this partnership, we are establishing a new route for significant gas volumes to reach Europe, thereby diversifying our portfolio and increasing the security of supply of our customers.”

SOCAR President Rovshan Najaf said the deal represents “another significant milestone” in Azerbaijan’s energy cooperation with Europe.

“By supplying reliable and substantial natural gas volumes to SEFE, we are contributing to Europe’s diversification goals and sustainable growth,” he said.

SOCAR reaffirmed its commitment to infrastructure investments and expanding production capacities to ensure steady and secure deliveries to European partners.

N.Tebrizli