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Azerbaijan Starts Gas Deliveries to Germany and Austria, Adding Two New European Markets
17 January 2026
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Azerbaijan Starts Gas Deliveries to Germany and Austria, Adding Two New European Markets

BAKU, January 18, 2026, 00:45 (GMT+4)

  • SOCAR reports that Azerbaijani gas is now flowing to customers in Germany and Austria through the Trans Adriatic Pipeline
  • This step expands Azerbaijan’s presence in Europe’s pipeline gas market amid ongoing shifts to reduce reliance on Russian supplies
  • Sources say a long-term supply pact with Germany’s SEFE aims for around 1.5 bcm annually, while Austria might absorb up to 1 bcm.

Azerbaijan’s state energy giant SOCAR has started delivering natural gas to Germany and Austria through the Trans Adriatic Pipeline (TAP), which is a key segment of the Southern Gas Corridor bringing Caspian gas into Europe, the company announced on Friday. SOCAR said this step aims to expand its gas sales network across Europe and the Middle East.

Flows at the outset are crucial as Europe continues to reshape its gas supply following the sharp drop in Russian pipeline deliveries after Moscow’s invasion of Ukraine. Germany and Austria have been scrambling to secure alternatives, while the market remains jittery over any potential disruption.

Azerbaijan’s appeal is straightforward: Central Europe prioritizes supply security and contract duration. Yet, Azerbaijani volumes remain far smaller than Norway’s pipeline gas or the output of global LNG exporters. The focus isn’t on swapping out a supplier but on diversifying risk.

SOCAR confirmed that the gas now flows through Italy en route to Austria and Germany, describing this as a move that will “further expand the geographical reach” of Azerbaijani gas in Europe and push the number of importing countries to 16. Azerbaijan’s gas exports to Europe in 2025 totaled 12.8 billion cubic metres (bcm), slightly down from 12.9 bcm, while total gas exports remained steady at 25.2 bcm, according to the energy ministry. TAP’s capacity has risen by 1.2 bcm since the start of the year, and a SOCAR source said Austria could receive up to 1 bcm annually. Reuters

Germany’s buyer, SEFE (Securing Energy for Europe), inked a 10-year gas deal with SOCAR back in June 2025. SEFE plans to boost the annual volume to 15 terawatt hours (TWh), about 1.5 bcm. CEO Dr Egbert Laege described the contract as opening “a new route for significant gas volumes” to Europe. SOCAR President Rovshan Najaf emphasized the deal’s role in bolstering Europe’s energy security and diversification. SEFE

Since Russian deliveries dropped and the Nord Stream pipelines were damaged in 2022, Germany has leaned more on LNG imports and expanded regasification capacity, Oilprice.com reports. The new Azerbaijani supply offers an additional pipeline route alongside existing flows from Norway and LNG shipments from the U.S. and other exporters.

Azerbaijan’s state news agency AZERTAC reported that German newspapers have highlighted the launch of Azerbaijani imports as aligning with Berlin’s efforts to reduce reliance on Russian energy.

The real risk lies in the infrastructure and output. If pipeline capacity and upstream investment don’t keep pace with demand, new contracts may take longer to scale up than buyers expect, pushing the market to rely again on the usual few major suppliers when pressure mounts.

At this stage, SOCAR views Germany and Austria as incremental moves in its broader European push, not a major breakthrough. The real challenge lies ahead: can the corridor handle higher volumes without hitting bottlenecks once demand picks up?

Stock Market Today

  • Crude Oil Prices Surge Amid Strait of Hormuz Closure Concerns
    May 21, 2026, 1:54 PM EDT. Crude oil July WTI futures climbed 3.20% as tensions rose over the Strait of Hormuz closure, a key oil transit chokepoint handling about 20% of the world's oil and liquefied natural gas. Iran's Supreme Leader's statement that enriched uranium will stay in Iran dampened hopes for a US-Iran deal. Military deployments by Pakistan to Saudi Arabia and drone attacks in the UAE and Saudi Arabia escalated geopolitical risks. The International Energy Agency says global oil inventories fell sharply and the market remains "severely undersupplied" until at least October, even if the conflict ends. Goldman Sachs estimates 14.5 million bpd cuts in Persian Gulf supply and a drawdown of nearly 500 million barrels from global stocks. OPEC plans phased quota increases aiming to restore output by September, despite conflict-driven supply constraints.

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