By Rona Rita David

Azerbaijan is taking another major step toward strengthening its role in the European energy market, following SOCAR’s signing of a long-term agreement with TotalEnergies, XRG-ADNOC’s investment platform-and the Turkish operator BOTAŞ to market gas from the offshore Absheron field.

The agreement, which covers exports starting in 2029 via the Southern Gas Corridor, strengthens Azerbaijan’s position as a key supplier to Türkiye and Europe at a time when the European Union continues to reduce its dependence on Russian gas and seek alternative sources of supply. The partnership highlights the strategic importance of the Caspian Sea region and the growing interest of major international companies in the energy infrastructure linking Central Asia to European markets, The Caspian Post reports via Energy Industry Review.

For Romania, the new Absheron agreement represents a consolidation of the role of the Balkan energy corridor and new opportunities for transit and regional trade.

SOCAR Secures Future Exports From the Absheron Field

Announced during Baku Energy Week, the new agreement covers gas volumes from the next development phase of the Absheron field. The final investment decision for this phase is expected by the end of this year.

“This will strengthen cooperation between the various companies, Azerbaijan, Türkiye, and our foreign partners. It also contributes to increasing the importance of the Southern Gas Corridor,” said SOCAR spokesperson Emin Sevdimaliyev.

The Southern Gas Corridor is Becoming Increasingly Important for Europe’s Energy Security

The Southern Gas Corridor, which carries gas from the Caspian Sea to Türkiye and then on to Europe, has gained increased importance since Russia’s full-scale invasion of Ukraine in 2022, which prompted European governments to accelerate their efforts to reduce their dependence on Russian gas via pipelines.

Since then, Azerbaijan has steadily increased its gas exports to Europe, and policymakers in Brussels view supplies from the Caspian Sea as a key element of their diversification efforts.

Türkiye is Strengthening its Position as an Energy Hub Between the Caspian Sea and Europe

Azerbaijan is already one of Türkiye’s main gas suppliers. For example, in April 2025, Azerbaijan supplied about 24.6% of Türkiye’s gas imports, and in August 2025 it became the second largest supplier with almost 21% of Türkiye’s total imports.

The agreement is expected to further strengthen the relationship as Ankara seeks to diversify its supply sources.

As far as SOCAR’s foreign market is concerned, Türkiye is the most important importer, as the company is one of the largest foreign investors in the country controlling strategic assets such as: STAR Refinery, one of the largest refineries in the region. SOCAR has interests in distribution networks and energy infrastructure offering petrochemical facilities.

The value of SOCAR’s investments in Türkiye is estimated at over $18-20 billion over the last decade, making the company a major economic player in the Turkish economy. SOCAR is the main supporter of: South Caucasus Pipeline; Trans-Anatolian Natural Gas Pipeline; Trans Adriatic Pipeline.

Why is Azerbaijan so Important to Türkiye?

Azerbaijan’s importance to Europe is closely linked to the role it plays in the Southern Gas Corridor, one of the most significant energy initiatives developed by the EU to diversify supply sources and routes. Gas extracted from Azerbaijani fields is transported to Türkiye via the Trans-Anatolian Natural Gas Pipeline (TANAP), and from there continues its journey to European markets through the interconnection networks serving Greece, Italy, and the Western Balkan states. This energy corridor has become a key element of the European strategy to reduce dependence on Russian gas and increase the resilience of the regional energy system.

Next Target for Azerbaijani Gas

Authorities in Baku and their European partners are already discussing the possibility of expanding exports and entering new markets. Particular attention is being paid to the countries of Central and Eastern Europe, a region that has traditionally been dependent on Russian supplies.

Currently, projects and technical solutions are being analysed that could enable the transport of additional quantities of Azerbaijani gas to Slovakia, Hungary, Romania, etc.

Consequently, Azerbaijan’s role in the European energy market is expected to grow in the future, as the European Union continues to diversify its supply sources and invest in the development of new energy corridors.

What the New Absheron Agreement Means for Romania

For Romania, Azerbaijani gas is not a matter of supply necessity, but rather a tool for diversifying and strengthening its regional role. Combined with domestic production and future offshore volumes from the Neptun Deep project, access to Azerbaijani gas could transform Romania into one of the most important energy hubs in Southeast Europe, capable of serving both domestic consumption and neighbouring markets.

Gas from Azerbaijan reaches Romania via the Southern Gas Corridor, which includes the TANAP and TAP pipelines, followed by interconnection infrastructure in the Balkans.

In recent years, ROMGAZ and other entities in the Romanian energy sector have held discussions and concluded agreements for the purchase of Azerbaijani gas through the Azerbaijani state-owned company SOCAR. In Romania, the SOCAR brand is already well-known through its network of filling stations.

The relationship between Romania and Azerbaijani gas has become much more important since 2022, amid European efforts to reduce dependence on Russian gas. Although Romania is one of the few EU countries with significant domestic natural gas production and is preparing to become a major regional producer through the Black Sea project, Azerbaijani gas continues to play a strategic role in plans to diversify and strengthen regional energy security.

Romania-Azerbaijan Green Corridor

Energy cooperation between the two countries is not limited to natural gas, as Romania is involved, alongside Azerbaijan, Georgia, and Hungary, in a strategic project to transport green energy via an undersea cable across the Black Sea. The project aims to transport renewable energy produced in the Caspian region, as well as to integrate energy markets and develop a new energy corridor between Asia and Europe.

For several years now, there has also been the AGRI (Azerbaijan-Georgia-Romania Interconnector) project, which involves transporting Azerbaijani gas via pipeline to Georgia. The gas will be liquefied at the Black Sea and transported by LNG ships to Romania, and distribution will then take place across Europe. Even though the project has not yet been implemented, interest in alternative gas sources and the new geopolitical conditions could bring AGRI back into the discussion.

The interconnection projects developed in recent years enable the transport of gas from Azerbaijan to: Romania, Hungary, the Republic of Moldova, Ukraine, and other markets in Central Europe. Thus, Romania is seeking to position itself as a regional energy hub.

XRG and SOCAR are Paving the Way for the Development of a 350bcm Natural Gas Reserve

For ADNOC, this agreement represents a new step in its international expansion through XRG, its investment platform, illustrating Abu Dhabi’s growing interest in establishing a presence in the global gas infrastructure.

The Absheron field is located approximately 100 kilometres southeast of Baku and is estimated to contain approximately 350 billion cubic meters of natural gas and 100 million tons of condensate at a depth of 500 meters. Production has already begun. The first phase of the project came online in July 2023 and produces approximately 4 million cubic meters of gas per day and 12,000 barrels of condensate per day, with the gas from this phase primarily destined for the domestic Azerbaijani market.

As for the second phase, it will effectively triple production. The second phase includes: three new subsea wells, a pipeline of approximately 140 km to shore, and new processing and export facilities.

The project projects that at full capacity, production would reach approximately 12.7 million cubic meters of gas and 35,000 barrels of condensate per day.

According to SOCAR and TotalEnergies estimates, total production from the two phases could exceed 4.5 billion cubic metres annually.