Baku, January 16, 2026 – The State Oil Company of the Republic of Azerbaijan (SOCAR) announced on Friday that it has begun supplying natural gas to buyers in Austria and Germany, marking a significant milestone in the expansion of Azerbaijani gas exports to Central Europe. The deliveries, which commenced in January 2026, are transported through the Trans Adriatic Pipeline (TAP), the European segment of the Southern Gas Corridor.
In an official statement, SOCAR described the development as entering "another important stage" in Azerbaijani gas exports. By selling substantial volumes to the markets of Southern and Central Europe, the company is further diversifying the continent's energy sources. "Thus, starting from January 2026, Azerbaijani gas is being supplied, among others, to the buyers from Austria and Germany," the statement read. The gas flows via Italy, leveraging existing infrastructure to reach these new markets.
This expansion increases the total number of countries importing Azerbaijani pipeline gas to 16, reinforcing Azerbaijan's position as a key player in European energy security. Azerbaijan already supplies natural gas to Türkiye, Georgia, Italy, Greece, Bulgaria, Romania, Hungary, Serbia, Slovenia, Croatia, North Macedonia, Slovakia, Ukraine, and Syria. The addition of Austria and Germany broadens the geographical reach, particularly into Central Europe, where demand for diversified, non-Russian sources has grown amid ongoing geopolitical shifts.
The Southern Gas Corridor, a 3,500-kilometer pipeline network, has been instrumental in this progress. It links the Shah Deniz gas field in the Azerbaijani sector of the Caspian Sea to European consumers through the South Caucasus Pipeline (SCP), Trans-Anatolian Pipeline (TANAP), and TAP. TAP, an 878-kilometer underwater and onshore pipeline, connects to TANAP at the Türkiye-Greece border, crosses Greece and Albania, traverses the Adriatic Sea, and lands in southern Italy. From there, gas is integrated into the Italian grid and onward to neighboring countries.
A key enabler of these new deliveries is a 10-year natural gas purchase agreement signed in June 2025 between SOCAR and Germany's state-owned energy company Securing Energy for Europe (SEFE). Under the deal, volumes are set to gradually scale up to 1.5 billion cubic meters (bcm) annually, equivalent to about 15 terawatt-hours (TWh) per year. The agreement, which began deliveries in 2025 with full ramp-up aligning with the January 2026 timeline, supports SEFE's efforts to diversify supplies following Germany's phase-out of Russian gas.
SEFE CEO Dr. Egbert Laege described the contract as "a testament to the strong relationship between Germany and Azerbaijan," highlighting its role in establishing a new route for significant gas volumes to Europe, thereby enhancing supply security for customers. SOCAR President Rovshan Najaf emphasized the company's commitment to investing in infrastructure and production capacities to ensure reliable, uninterrupted supplies.
The timing coincides with an increase in TAP's capacity. The pipeline's first expansion phase, adding 1.2 bcm of long-term annual capacity starting in 2026, was triggered following the 2021 Market Test and is now operational. This upgrade, part of long-term contracts booked during the process, enhances TAP's ability to handle growing demand from new and existing markets. Since commercial operations began in late 2020, TAP has delivered over 50 billion cubic meters of gas to Europe, underscoring its reliability and strategic importance.
Azerbaijan's gas exports have shown steady growth. In 2025, total production reached approximately 51.5 bcm, with exports stable at around 25.2 bcm overall. European deliveries via TAP stood at about 12.8 bcm in 2025, slightly down from the previous year due to market fluctuations but poised for growth with new infrastructure and contracts.
President Ilham Aliyev has highlighted Azerbaijan's unique position in global energy markets, noting that no other country supplies pipeline gas to as many destinations. In early January 2026 interviews, he confirmed plans to add more countries, with flexible models combining long-term contracts and on-demand supplies. The entry into Austria and Germany aligns with this strategy, potentially paving the way for further expansion, including to Albania.
This development is part of Europe's broader push for energy diversification following the reduction in Russian supplies. Azerbaijani gas, originating from the resource-rich Shah Deniz field (operated by BP with SOCAR as a major partner), offers a stable alternative through a non-Russian route. SOCAR continues to expand its marketing activities across Europe and the Middle East, building partnerships and strengthening Azerbaijan's role as a reliable supplier.
The announcement has been widely covered by international outlets, including Reuters, Xinhua, and Anadolu Agency, reflecting growing interest in the Southern Gas Corridor's contributions to continental energy stability.
As Azerbaijan invests in both traditional hydrocarbons and renewables, these pipeline deliveries underscore its evolving role in global energy geopolitics, providing diversification, competition, and long-term security for European consumers.
