Azerbaijan boosts gas production as exports to Europe stall

SEATTLE (Oil Monster): As Oilprice.com writes, citing data from Azerbaijan’s Ministry of Energy, the country increased its natural gas production in 2025, reinforcing its position as one of Europe’s key non-Russian gas suppliers. Total output reached 51.5 billion cubic meters (bcm), marking a 2.4% increase compared to the previous year.

The bulk of production continued to come from the Shah Deniz gas field, which accounted for 27.9 bcm. Additional volumes were produced at the Azeri–Chirag–Gunashli block with 14.1 bcm, while the Absheron field contributed 1.6 bcm. Azerbaijan’s state energy company SOCAR produced 7.9 bcm, according to official figures.

Despite higher production, export volumes remained largely unchanged. Azerbaijan exported 25.2 bcm of natural gas in 2025, roughly the same level as in 2024. Europe remained the largest destination, receiving about half of total exports. However, gas deliveries to European markets edged down slightly to 12.8 bcm.

Exports to other destinations also declined modestly. Supplies to Türkiye decreased, including volumes transported via the Trans-Anatolian Natural Gas Pipeline (TANAP), while exports to Georgia recorded a similar downward trend. Limited volumes of Azerbaijani gas were also delivered to Syria during the year.

At the same time, Baku has continued efforts to strengthen its long-term presence in European energy markets. A new natural gas supply agreement was signed between SOCAR and Hungary’s MVM Group, set to take effect on January 1, 2026, and valid for two years. The deal is positioned as part of a broader strategic energy partnership between Azerbaijan and Hungary.

However, early-2025 export data has raised questions about Azerbaijan’s ability to meet its medium-term targets. Gas exports to the European Union in the first quarter of 2025 were lower than during the same period a year earlier, casting doubt on Baku’s stated goal of supplying up to 20 bcm of gas annually to Europe by 2027.

These developments are unfolding as the European Union prepares to phase out Russian gas imports by 2027, increasingly relying on liquefied natural gas, particularly from the United States. This shift intensifies competition for pipeline gas suppliers and underscores the structural challenges Azerbaijan faces in expanding its export footprint in Europe.

 Courtesy: www.aze.media