Azerbaijan's SOCAR and Germany's SEFE have agreed to a 10-year natural gas contract.

Azerbaijan's state oil company SOCAR has finalized a 10-year natural gas purchase agreement with Germany's state-owned energy firm SEFE, both companies announced on Tuesday. Deliveries from SOCAR to SEFE (Securing Energy for Europe) are set to commence this year.

The annual supply is expected to increase gradually to 15 terawatt-hours (TWh), or about 1.5 billion cubic meters (bcm). This agreement will facilitate investments in production and infrastructure, such as gas compressors, and enhance pipeline gas deliveries to Europe, thereby bolstering the continent’s energy security. SEFE CEO Egbert Laege remarked that the long-term contract highlights the strong relationship between Germany and Azerbaijan, noting it establishes a new channel for significant gas supplies to Europe, diversifying the portfolio and enhancing supply security for customers.

SOCAR President Rovshan Najaf stated that the deal represents a "significant milestone" in SOCAR's commitment to improving Europe's energy security. He emphasized that by providing substantial and reliable natural gas to SEFE, they are reinforcing the Azerbaijan-Germany partnership and supporting Europe’s energy diversification and sustainable growth objectives. Najaf also mentioned SOCAR's dedication to investing in infrastructure and production capacities to ensure dependable energy supplies for partners.