SEFE, an international energy company, has entered into a decade-long natural gas purchase agreement with the State Oil Company of Azerbaijan Republic (SOCAR).
The contract, set to commence in 2025, will result in an annual increase in natural gas deliveries to Europe, eventually reaching up to 15 terawatt-hours (TWh).
This volume is equivalent to approximately 1.5 billion cubic metres, bolstering the continent’s energy security.
The partnership between SEFE and SOCAR is expected to stimulate investments in production and infrastructure, including the installation of gas compressors.
SEFE CEO Egbert Laege said: “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.”
These enhancements are designed to augment the flow of pipeline gas to Europe, a strategic move to ensure a stable and secure supply of energy.
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By GlobalDataSOCAR president Rovshan Najaf added: “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 remains dedicated to investing in infrastructure and production capacities, ensuring secure and uninterrupted energy supplies for our partners.”
Moreover, SOCAR has recently expanded its collaborative efforts by signing new exploration agreements with ExxonMobil and bp.
These agreements are focused on maintaining Azerbaijan’s oil production, which is anticipated to remain at around 582,000 barrels per day for the next five years, supported by Western energy investments.
