Azerbaijan's state oil company SOCAR signed a 10-year natural gas purchase agreement with Germany's state-owned energy company SEFE, both companies announced on Tuesday.
Deliveries from SOCAR to SEFE (Securing Energy for Europe) under this contract will start this year, the statement read.
The annual supply volume will be gradually increased to reach 15 terawatt-hours (TWh), which is approximately 1.5 billion cubic meters (bcm), it added.
The agreement will support investments in production and infrastructure, such as gas compressors, and enable increased pipeline gas deliveries to Europe, contributing to the continent’s energy security, according to the statement.
Commenting on the deal, SEFE CEO Egbert Laege said that the long-term contract is a testament to the strong ties 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," Laege added.
SOCAR President Rovshan Najaf said that the deal 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," Najaf added.
"SOCAR remains dedicated to investing in infrastructure and production capacities, ensuring secure and uninterrupted energy supplies for our partners," he added.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr