SEFE Securing Energy for Europe and the State Oil Company of the Azerbaijan Republic (SOCAR) have signed a long-term natural gas supply contract that will see up to 15 terawatt hours (TWh) of natural gas delivered annually to Europe. The 10-year agreement, announced on 10 June 2025, marks a significant step toward strengthening energy ties between Germany and Azerbaijan while enhancing the continent’s energy security.
Under the agreement, natural gas deliveries from SOCAR to SEFE will begin in 2025. The contracted volumes will ramp up gradually to reach 15 TWh per year—equivalent to about 1.5 billion cubic meters (bcm) of natural gas. These supplies are expected to play a vital role in diversifying Europe’s energy sources and mitigating supply risks amid ongoing geopolitical uncertainties.
The long-term deal also supports infrastructure development, including investments in gas compression systems and other critical components of pipeline infrastructure. These enhancements aim to increase the flow of natural gas into Europe via pipeline routes, thereby reinforcing the region’s energy resilience.
Dr. Egbert Laege, CEO of SEFE, emphasized the strategic importance of the new agreement. “This long-term contract is a testament to the strong relationship between Germany and Azerbaijan,” Laege said. “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 for our customers.”
SOCAR President Rovshan Najaf echoed the sentiment, highlighting the partnership’s broader implications for regional cooperation and sustainable growth. “This agreement marks another significant milestone in SOCAR’s ongoing commitment to enhancing Europe’s energy security,” Najaf stated. “By supplying reliable and substantial natural gas volumes to SEFE, we are strengthening the partnership between Azerbaijan and Germany and contributing positively to Europe’s energy diversification goals.”
Najaf also reiterated SOCAR’s commitment to continuous investment in energy infrastructure and production capabilities, aimed at ensuring reliable and uninterrupted supplies for European partners.
The agreement aligns with broader European Union efforts to reduce reliance on traditional energy sources and suppliers while promoting diversification and sustainability. As part of this strategy, partnerships with energy producers like Azerbaijan are increasingly viewed as essential to achieving energy stability and long-term security.
With gas supplies under pressure and demand expected to remain high, the SEFE-SOCAR agreement provides a timely and strategic boost to Europe’s energy landscape.
SEFE, an international energy company, plays a key role in securing energy supply and advancing the decarbonization goals of its customers. The company operates across the entire energy value chain, including origination, trading, sales, transportation, and storage. With decades of experience in energy trading and the continued growth of its liquefied natural gas (LNG) operations, SEFE has established itself as a major supplier to industrial customers across Europe. The company delivers approximately 200 terawatt-hours of gas and power annually.
