Ukraine signs first Azerbaijan gas deal via Transbalkan route
Ukraine's state-owned energy company, Naftogaz has signed its maiden natural gas supply agreement with Azerbaijan's SOCAR, marking a significant step in the country's efforts to diversify its energy sources amid ongoing geopolitical tensions.
The deal, struck with SOCAR Energy Ukraine on Thursday, will see Azerbaijani natural gas transported to Ukraine for the first time through the Transbalkan corridor via Bulgaria and Romania. Whilst the initial shipment represents a small volume, Ukrainian officials have hailed it as strategically vital for the nation's energy security.
"This is a small volume but strategically important step that paves the way for long-term cooperation," said Sergii Koretskyi, CEO of Naftogaz. "It is also another example of diversifying supply sources and strengthening Ukraine's energy security."
The agreement represents a breakthrough in Ukraine's quest to reduce its energy dependence, particularly as the country continues to face challenges securing reliable gas supplies. The Transbalkan route offers an alternative pathway that bypasses traditional transit corridors, providing Ukraine with greater flexibility in its energy procurement strategy.
SOCAR Energy Ukraine, established in 2008, operates 56 fuel stations across 11 regions of the country and has received total investment of $294.2 million from its parent company since inception. The subsidiary focuses on wholesale and retail sales of petroleum products, natural gas, and aviation fuel.
Azerbaijan has emerged as an increasingly important energy supplier to Europe, exporting 12.9 billion cubic metres of gas to the continent in 2024. Earlier this year, SOCAR secured a multi-year contract with German state-owned company SEFE to supply 1.5 billion cubic metres annually, demonstrating the country's growing role in European energy markets.
