EU agrees to double Azeri gas imports in shift from Russia

The European Union reached a deal to double natural gas imports from Azerbaijan in a bid to help replace Russian fossil fuels amid a worsening energy crisis following President Vladimir Putin’s invasion of Ukraine.  

To boost the shipments, the capacity of the Southern Gas Corridor -- a network of pipelines connecting the Caspian Sea with Europe -- will be increased to at least 20 billion cubic meters annually by 2027. Azerbaijan is already now bolstering deliveries to the EU, from 8.1 billion cubic metres in 2021 to an expected 12 billion cubic meters in 2022, according to the European Commission.

Russian gas supplies to Europe were no longer reliable, European Commission President Ursula von der Leyen told reporters. “The EU has therefore decided to diversify away from Russia and to turn to more reliable, trustworthy suppliers. And I’m glad to count Azerbaijan among them.”

The EU is rushing to secure new gas supplies as it seeks to end dependence on Russia. Gazprom PJSC’s shipments to the bloc have already been reduced, and there are growing fears a shortage could occur if the key Nord Stream pipeline doesn’t fully return after maintenance, or if Moscow cuts off supplies entirely.

The agreement also aims to make use of Azerbaijan’s potential in offshore wind and green hydrogen, in line with the European Green Deal, a massive sustainable overhaul with the ultimate goal of climate neutrality by 2050. Azerbaijan will evolve from being a fossil fuel supplier to becoming a renewable energy partner, von der Leyen said.

The memorandum of understanding also supports the creation of programs to reduce methane emissions and collect natural gas that would otherwise be vented, flared or released into the atmosphere.