German company SEFE signs 10-year gas supply deal with Azerbaijan

German state-owned energy company SEFE signed a 10-year deal with Azerbaijan's Socar to buy up to 15 terawatt-hours (around 1.5 billion cubic meters) of gas annually, Bloomberg reports.

The gas will likely be delivered to Europe via the Trans-Adriatic Pipeline, which runs through Greece, Albania, and across the Adriatic Sea to Italy. According to SEFE’s statement, the deal with Socar is expected to boost investments in production and infrastructure across the bloc, increasing pipeline gas supplies to Europe.

As noted by Bloomberg, SEFE is actively engaged in negotiations for new supply purchases, as the region, having lost most of its Russian gas since 2022, now depends on other global markets. Even with Norwegian fields operating at full capacity, Europe still faces a need for additional sources, including expected shipments of US liquefied natural gas.