EU, Azerbaijan Sign Strategic Energy Partnership Memo as Bloc Aims to Double Gas Imports From Baku

Earlier in the day, European Commission President Ursula von der Leyen said that Brussels sought to increase gas deliveries from Azerbaijan in the next few years.

The EU and Azerbaijan have signed a memorandum of understanding on strategic partnership in the field of energy, with the official ceremony being held in Baku on Monday. The agreement was signed by European Commission President Ursula von der Leyen and Azerbaijani President Ilham Aliev.

"The new Memorandum of Understanding on a Strategic Partnership in the Field of Energy signed by the two Presidents today includes a commitment to double the capacity of the Southern Gas Corridor [SGC] to deliver at least 20 billion cubic metres to the EU annually by 2027," the EU Commission said in a statement.

The SGC, a pipeline route stretching 3,500 kilometers (2,174 miles), allows the transport of gas from the Caspian region to Europe. Commercial deliveries via the SGC began in December 2020, marking the first time in history that Azerbaijan’s natural gas reached the European market through direct pipeline connection.

Von der Leyen said that next year Baku is planning to increase gas deliveries to Europe to 12 billion cubic metres.

"This is already a very important supply route for the EU delivering currently more than 8 BMC of gas per year and we will expand its capacity to 20 BCM in a few years. From next year on we should already reach 12 BCM this will help compensate for cuts in supplies of Russian gas and contribute significantly to European security of supply."

The statement notes that the parties are also negotiating a new comprehensive agreement in a wide range of areas, including economy, investment and trade.

"Today, with this new Memorandum of Understanding, we are opening a new chapter in our energy cooperation with Azerbaijan, a key partner in our efforts to move away from Russian fossil fuels … But energy is only one of the areas where we can enhance our cooperation with Azerbaijan and I look forward to tap the full potential of our relationship," von der Leyen said in a statement.

Von der Leyen tweeted on Monday that the European Union wanted to double gas imports from Azerbaijan within the next few years.

"The EU is turning to more reliable energy suppliers. Today, I'm in Azerbaijan to sign a new agreement. Our goal: double the gas delivery from Azerbaijan to the EU in a few years."

She added that Azerbaijan will be "a crucial partner" for the EU on its way to climate neutrality.

Last week, Aliev said that "an important document on energy security will be signed between the European Union and Azerbaijan." Last year, Baku supplied some eight billion cubic metres of natural gas to Europe through pipelines running via Georgia and Turkey.

The EU has repeatedly said it is trying to decrease its dependence on Russian oil and gas to "punish" Moscow for its special military operation to demilitarize and de-Nazify Ukraine. Until recently, Russia has supplied the EU with about 40% of total gas imports. A number of EU nations have refused to pay for Russian energy in rubles, with the bloc being hit hard by the self-inflicted dual calamities of inflation and spiking energy costs. The German government, for instance, is concerned that insufficient gas supplies could lead to emergencies in some regions this winter, with the gas crunch persisting in the country until 2024, leading to a threefold hike in gas prices, Bild reported on Monday.