Germany’s SEFE Securing Energy for Europe has signed a 10-year natural gas purchase agreement with the State Oil Company of Azerbaijan Republic (SOCAR), the companies announced on Tuesday.
Under the agreement, SOCAR will supply gas volumes in phases to gradually reach approximately 1.5 bcm (53 bcf) per year, with deliveries scheduled to begin in 2025. The gas will be transported via pipeline and will support investments in production and infrastructure, such as gas compressors.
“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,” said Egbert Laege, CEO of SEFE.
Azerbaijan is aiming to offset its declining crude output, which has dropped since the peak production of 1 million bopd at the Azeri–Chirag–Gunashli complex in 2010. The country plans to increase natural gas exports by around 8 bcm (280 bcf) by 2030.
SOCAR, which is responsible for the exploration, production, processing and transport of oil and gas in Azerbaijan, recently signed agreements with ExxonMobil and BP for oil and gas exploration in the Azeri Caspian region. According to the US Department of Energy, Azerbaijan’s proven reserves stand at approximately 7 billion barrels of oil and 1.7 tcm (60 tcf) of natural gas.
Source: By theenergyyear.com