28 Jul 2025 10:54

Naftogaz signs agreement with SOCAR subsidiary to purchase Azerbaijani gas

BAKU. July 28 (Interfax) - Ukraine's Naftogaz has signed an agreement with SOCAR Energy Ukraine, part of the State Oil Company of the Azerbaijani Republic (SOCAR), for purchasing Azerbaijani natural gas, Naftogaz said.

"Naftogaz Group has signed its first agreement with SOCAR Energy Ukraine for purchasing Azerbaijani natural gas. For the first time, a test delivery of (Azerbaijani) gas is being carried out via the Trans-Balkan route along the Bulgaria-Romania-Ukraine corridor," it said.

"This is a small step in terms in volume, but a strategically important one that paves the way for long-term cooperation. It is also another example of diversifying supply sources and strengthening Ukraine's energy security," Naftogaz CEO Sergei Koretsky was quoted as saying.

As reported, Azerbaijan has gas supply contracts with 11 European countries - Italy, Greece, Bulgaria, Romania, Hungary, Serbia, Slovenia, Croatia, Slovakia, North Macedonia and Germany. Among these, long-term contracts with fixed supply volumes have been signed with Italy, Greece and Bulgaria, while a 10-year agreement with Germany's SEFE (Securing Energy for Europe) stipulates a gradual increase in annual supply volumes up to 15 TWh (approximately 1.5 billion cubic meters). Contracts without exact purchase volumes have been signed with the remaining countries.

Azerbaijan also exports gas to Turkey via the Trans-Anatolian Natural Gas Pipeline (TANAP) and South Caucasus Pipeline (SCP), and to Georgia via the SCP and Gazimagomed-Gazakh pipeline.

Supplies of Azerbaijani gas to Syria are set to begin on August 1, following a memorandum signed on July 12, 2025.

SOCAR Energy Ukraine, established in December 2009, is primarily engaged in wholesale and retail petroleum product sales, wholesale natural gas distribution, and aviation fuel supply.

The Trans-Balkan Pipeline, a major gas pipeline traversing Ukraine, Moldova, Romania, Bulgaria and Turkey, was previously used for Russian gas deliveries to the Balkans. It is now operating in reverse flow mode.