Strategic energy partnership: Azerbaijan and Germany double gas cooperation by socar-sefe contract

Published on: June 11, 2025 / update from: June 11, 2025 - Author: Konrad Wolfenstein

Strategic energy partnership: Azerbaijan and Germany double gas cooperation by Socar-Sefe Treaty-Image: Xpert.digital

Energy transition accelerated: Azerbaijan is becoming Germany's new gas partner with 15 TWH annually

Strategic partnership seals: How Germany reduces its energy dependency by gas from Azerbaijan

The long-term gas delivery agreement between the Azerbaijanical State Oil Society Socar and the German energy company Sefe marked a historical turning point in the German-Aserbaijanic energy education and Europe's efforts to make Europe significantly increasingly over energy-versification. The ten -year contract provides for a gradual increase in annual gas deliveries to up to 15 terawatt hours (TWH) or about 1.5 billion cubic meters, which together with existing deliveries to Uniper doubles the entire Azerbaijani gas exports to Germany to around 3 billion cubic meters annually. This strategic partnership not only underlines Azerbaijans growing role as a reliable energy partner for Europe, but also demonstrates Germany's consistent strategy to reduce the dependence on Russian energy imports by opening up alternative sources of care from Caspian space.

Contract details and economic dimensions

The scope and time frame of the delivery agreement

The contract concluded between Socar and Sefe extends over a period of ten years and provides for the start of gas deliveries in 2025. The annual delivery quantities are gradually increased to the target volume of 15 TWH, which corresponds to around 1.5 billion cubic meters and thus represents a substantial addition to Germany's energy portfolio. This amount corresponds approximately to a twentieth of Germany's annual gas consumption and underlines the strategic importance of the agreement for German energy supply. The deliveries are handled by the proven infrastructure of the southern gas corridor, which ensures safe and continuous care.

Sefe as a strategic partner

Sefe (Securing Energy for Europe), formerly known as Gazprom Germania, brings a special historical dimension into this partnership. After the Russian raid on Ukraine, the company was initially placed under trusted administration of the Federal Network Agency and later fully nationalized. With an annual sales volume of 200 TWh gas and electricity, SEFE is one of the most important energy suppliers for industrial customers in Europe and has gass storage capacities of 5.6 billion cubic meters, which corresponds to about a quarter of the entire German storage capacity. This transformation from a Russian subsidiary to a German state group symbolizes the basic change in the European energy landscape since 2022.

Geopolitical context of energy -versification

Azerbaijan's role in European energy security

Azerbaijan's position as an energy supplier for Europe has dramatically changed since the Russian attack on Ukraine and has gained strategic importance. The country was able to increase its gas exports to Europe from around 8 billion to around 13 billion cubic meters annually and thus resolved to the European Call of the Energy Crisis in 2022. This remarkable increase by over 60 percent demonstrates both technical capacity and political will Azerbaij, to act as a reliable energy partner for Europe. With a share of around seven percent of the total EU gas import, Azerbaijan is now fourth in Norway, Algeria and Russia of the most important gas suppliers for the European Union.

Germany's energy transition after 2022

German energy policy has been undergoing a fundamental realignment since the beginning of the Ukraine War, which made a quick diversification of the gas supply sources. Germany, which was previously dependent on Russian gas imports, had to open up alternative sources of supply in a very short time and take both short -term security of supply and long -term strategic goals. The new Socar Sefe Treaty fits seamlessly into this strategy and complements the existing deliveries to Uniper, which have been up to 1.5 billion cubic meters annually since 2013 and run until 2045. This double supply rail over two different German energy companies creates additional redundancy and security in gas supply.

Infrastructure of the southern gas corridor

Technical architecture of gas deliveries

The southern gas corridor forms the technical backbone for the Azerbaijani gas deliveries to Europe and is one of the most important energy infrastructure investments in recent decades. The complex system includes three main components: the extended south-wing chiseline pipeline (SCPX) by Azerbaijan, the transanatol pipeline (Tanap) through Turkey and the transadriatic pipeline (TAP) by Greece, Albania and Italy. With a total length of almost 3,500 kilometers and investment costs of an estimated $ 45 billion, this infrastructure network represents one of the largest cross-border energy investments in the history of Europe.

Capacities and transport routes

The transadriatic pipeline, which has been in operation since December 31, 2020, has a transport capacity of ten to twenty billion cubic meters of natural gas per year and thus enables a significant expansion of Azerbaijanic gas exports to Europe. The pipeline connects in Kipoi on the Turkish-Greek border with the Tanap and transports the gas over 878 kilometers through Greece, Albania and the Adriatic Sea to southern Italy, from where it can be forwarded to the European markets including Germany. This infrastructure enables the gas quantities agreed in the new SEFE-SOCAR contract to be reliably and continuously transported to Germany without relying on Russian or other politically sensitive transit routes.

Bilateral relationships and diplomatic developments

High -ranking political contacts

The intensive diplomatic relationships between Germany and Azerbaijan have developed a remarkable dynamic in recent years and form the political foundation for the in -depth energy partnership. Since February 2023, Azerbaijani President Ilham Aliyev Germany has visited four times, which underlines the high priority that both countries attached to their bilateral cooperation. These frequent contacts at the highest level create the necessary trust and political stability that are essential for long -term energy partnerships. In April 2025, Federal President Frank-Walter Steinmeier was a historical visit to the Armenia and Azerbaijan, which was the first trip of a German Federal President to this region and illustrated the growing importance of South Caucasus for German foreign policy.

Strategic partnership in the energy sector

The energy cooperation between Germany and Azerbaijan goes far beyond pure gas deliveries and also includes areas such as energy efficiency, technology transfer and sustainable development. As early as 2018, Uniper and Socar signed an agreement to increase energy efficiency in Azerbaijanic oil and gas production, which aims to improve energy consumption in production processes and reduce greenhouse gas emissions. This technological cooperation demonstrates that the German-Asherbaijanic energy partnership is not only geared towards short-term delivery relationships, but also pursues long-term sustainable development goals.

Meaning for European energy security

Diversification effects and security of supply

The new Socar Sefe Treaty contributes significantly to the diversification of European gas supply and reduces strategic vulnerability due to dependencies on individual suppliers. By doubling the Azerbaijanic gas exports to Germany to around 3 billion cubic meters annually, an additional supply route is established that works regardless of Russian or other geopolitically sensitive transit paths. This diversification is particularly valuable, since it is based on already proven infrastructure and does not have the uncertainties of new technological approaches or unexpected transport routes. The southern gas corridor has demonstrated its reliability since its commissioning and has already transported almost 80 billion cubic meters of natural gas via the Baku-Tiflis-Erzurum pipeline.

Long -term energy management perspectives

The ten years of term of the Socar Sefe Treaty offer Germany and Europe an important planning security for the time of energy change and enable an orderly transformation of the energy systems. This long -term security of supply is particularly important because it creates space for the parallel development of renewable energies and new technologies such as green hydrogen without endangering basic industrial care. Azerbaijan has already announced that it will also export renewable energies and green hydrogen to Europe, which could make the partnership into a sustainable bridge in the low -carbon future. The continuous investments in production and infrastructure capacities, which Socar has agreed in the context of the agreement, underline the long-term commitment to a stable energy partnership.

Southern gas corridor becomes a key route for European energy security

The strategic energy partnership between Azerbaijan and Germany, which is significantly strengthened by the new Socar Socar Sefe Treaty, represents a milestone in European energy-versification and marks an important step to reduce dependence on Russian gas imports. The doubling of Azerbaijanic gas exports to Germany to around 3 billion cubic meters annually not only creates additional supply security, but also demonstrates the effectiveness of the southern gas corridor as an alternative transport route for Caspian gas to Europe. The close integration of energy -related interests with high -ranking diplomatic contacts and technological cooperation creates a solid basis for a permanent and trusting partnership, which enables both countries to jointly manage the challenges of the energy transition and at the same time to ensure short -term security of supply.