Azerbaijan Begins Supplying Natural Gas to Germany, Austria

Azerbaijan started supplying natural gas to Germany and Austria, marking a further expansion of its role as a key energy partner for Europe at a time when the continent is seeking to reduce its dependence on Russian gas.

The State Oil Company of Azerbaijan Republic (SOCAR) announced on Friday that gas deliveries to the two countries have commenced, adding new destinations to the growing list of European markets receiving Azerbaijani gas. The move comes amid sustained demand from Europe following the shift away from Russian energy supplies in the wake of the war in Ukraine.

SOCAR said that shipments to Germany and Austria are being routed through southern and central Europe via the Trans Adriatic Pipeline (TAP), the European segment of the Southern Gas Corridor, which connects Azerbaijan’s gas fields to European consumers through Türkiye, Greece, Albania, and Italy.

In June last year, SOCAR signed a 10-year agreement with Germany’s state-backed energy company SEFE to supply 1.5 billion cubic meters of gas annually, laying the groundwork for the newly launched deliveries. The expansion via Italy into Austria and Germany significantly broadens the geographic reach of Azerbaijani gas across the continent.

With the addition of these two markets, the number of countries importing Azerbaijani natural gas has now risen to 16, underscoring Baku’s growing strategic importance in Europe’s energy diversification efforts.

Capacity constraints and investment needs

Despite the expansion, SOCAR cautioned that further increases in exports will depend on infrastructure development and upstream investment. The company said its ability to scale up supplies is closely linked to expanding pipeline capacity and boosting production from existing and new gas fields.

According to data from Azerbaijan’s Ministry of Energy, gas exports to Europe slipped slightly last year to 12.8 billion cubic meters, compared with 12.9 billion cubic meters the previous year. Total gas exports, however, remained steady at 25.2 billion cubic meters, reflecting stable demand across multiple regions.

European policymakers have increasingly looked to Azerbaijan as a reliable alternative supplier as they reconfigure energy security strategies following Russia’s invasion of Ukraine. Long-term contracts, infrastructure upgrades, and political coordination have become central to sustaining and expanding these flows.