Azerbaijan Commences Natural Gas Exports to Germany and Austria, Bolstering European Energy Security

Historic Gas Deliveries Begin

The State Oil Company of Azerbaijan (SOCAR) announced in January 2026 the commencement of natural gas supplies to Germany and Austria. This marks a significant expansion of Azerbaijan's energy footprint in Europe, bringing the total number of countries receiving Azerbaijani gas to 16. The gas is being transported via the Trans Adriatic Pipeline (TAP), which forms the European segment of the Southern Gas Corridor, with deliveries routed through Italy.

Key Agreements and Supply Routes

The new deliveries are underpinned by long-term agreements. Notably, Germany's energy company SEFE (Securing Energy for Europe) signed a 10-year contract with SOCAR in June 2025. This agreement stipulates an annual supply that will gradually increase to approximately 1.5 billion cubic meters (bcm), equivalent to 15 TWh. For Austria, a source within SOCAR indicated that up to 1 bcm per year would be supplied. The Trans Adriatic Pipeline (TAP) has also seen an increase in its capacity by 1.2 bcm per year, effective from January 2026, facilitating these new exports.

Strategic Importance for European Diversification

This development is a crucial step in Europe's broader strategy to enhance energy security and reduce its dependence on traditional suppliers, particularly in light of the European Union's decision to fully cease Russian gas imports by the end of 2027. The Southern Gas Corridor, which includes the TAP, is central to these efforts, providing a direct route for Caspian Sea gas to European markets. In July 2022, the EU and Azerbaijan signed a Memorandum of Understanding, committing to double gas supplies to the bloc to at least 20 bcm annually by 2027. While current deliveries to Europe range between 11-13 bcm per year, the initiation of supplies to Germany and Austria contributes to this ambitious target.

Aliyev's Remarks at Davos

Azerbaijani President Ilham Aliyev addressed the significance of these energy developments during his participation in the World Economic Forum in Davos in January 2026. He highlighted that Azerbaijan now supplies natural gas to 16 countries, including 10 EU member states. President Aliyev noted that Azerbaijan had increased gas supplies to Europe at the request of the European Commission following the Russia-Ukraine conflict. He also emphasized Azerbaijan's commitment to economic diversification and renewable energy, with plans to achieve 8 gigawatts of solar and wind energy capacity by 2032, which could further free up natural gas for export. However, Aliyev also expressed a critical view regarding the 'low level of interest from European companies to invest' in Azerbaijan's energy sector, despite Europe being a primary buyer of its natural gas.