German firm pens 10-year gas deal with Azerbaijan’s SOCAR

Germany’s Securing Energy for Europe (SEFE) has taken steps to enable a multi-year import of natural gas by inking an agreement with the State Oil Company of the Republic of Azerbaijan (SOCAR), fortifying Europe’s energy security.

Thanks to this natural gas purchase contract, SOCAR will deliver gas for the next ten years to SEFE, starting in 2025. The annual quantity will gradually reach 15 terawatt hours (TWh), which is approximately 1.5 billion cubic meters (bcm).

Dr Egbert Laege, SEFE’s CEO, commented: “This long-term contract is a testament to the strong relationship between Germany and Azerbaijan. 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.”

According to the German player, the partnership will support investments in production and infrastructure, such as gas compressors, boosting the amount of pipeline gas coming to Europe and ensuring the continent’s security of supply.

Rovshan Najaf, SOCAR’s President, highlighted: “This agreement marks another significant milestone in SOCAR’s ongoing commitment to enhancing Europe’s energy security.

“By supplying reliable and substantial natural gas volumes to SEFE, we are strengthening the partnership between Azerbaijan and Germany, contributing positively to Europe’s energy diversification goals and sustainable growth.”

SOCAR recently partnered with ExxonMobil and Gran Tierra Energy to evaluate energy opportunities within the oil and gas landscape. The Azerbaijani company also inked a deal to become Chevron’s partner at a gas field offshore Israel.

“SOCAR remains dedicated to investing in infrastructure and production capacities, ensuring secure and uninterrupted energy supplies for our partners,” emphasized Najaf.

The gas deal with SOCAR comes months after SEFE signed a heads of agreement (HoA) with Delfin Midstream for the supply of liquefied natural gas (LNG) from the latter’s proposed project on the U.S. Gulf Coast.