Chinese companies are steadily expanding their presence in Azerbaijan, reflecting a broader trend of deepening cooperation between the two countries in energy, infrastructure, and technology.
On Thursday, the Oil Company of Azerbaijan (SOCAR) and Sinopec Engineering signed a new framework agreement on cooperation, underscoring the growing partnership between Baku and Beijing.
According to SOCAR’s press service, the signing took place following a meeting between SOCAR President Rovshan Najaf and Sinopec Engineering President Zhang Xinmin. The two sides discussed collaboration in oil and gas processing, petrochemicals, digital transformation, the energy transition, and the use of modern refining technologies.
This partnership aligns with the strategic logic of expanding economic and business relations between Azerbaijan and China. SOCAR already maintains successful cooperation with several Chinese corporations, including in the field of green energy.
Photo: SOCAR
Sinopec Engineering (SEG) is a key Chinese engineering company specializing in the petrochemical and oil refining sectors. It provides a full range of services - from project design and construction to comprehensive management - and operates under the umbrella of China Petrochemical Corporation (Sinopec), one of the world’s largest energy conglomerates.
SEG’s portfolio includes numerous projects across Asia, Europe, Africa, and beyond, positioning it as a global player in the energy engineering market.
According to company data, SEG holds China’s top-tier national qualification for general construction contracting. It applies advanced international project management standards to compete effectively in global markets. Since 2000, SEG has completed 16 large-scale projects in Saudi Arabia, the UAE, and other countries, with 28 more currently under construction.
In 2024, the total value of SEG’s new overseas contracts exceeded USD 5 billion - nearly 80% higher than the previous year. In May 2025, its subsidiary Sinopec Shanghai Engineering Company signed a $4 billion contract with Italy’s Tecnimont S.p.A. to build a polyethylene plant in Astana with an annual production capacity of 1.25 million tons as part of the “Silleno” project.
SOCAR’s cooperation with Chinese companies has a long-standing foundation. Back in 2018, SOCAR established a joint venture with BGP Inc., a subsidiary of the China National Petroleum Corporation (CNPC).
In June 2023, SOCAR signed another agreement with China Energy International Group Co., focusing on renewable energy, Azerbaijan’s wind power potential (both onshore and offshore), and the broader green transition. China Energy has extensive international experience in developing low-carbon and green energy projects worldwide.
In September 2025, SOCAR and China National Chemical Engineering & Construction Corporation Seven (CNCEC) agreed to carry out joint projects. During his visit to Tianjin, Azerbaijani President Ilham Aliyev met with CNCEC Chairman Mo Dingci to discuss cooperation in petrochemical production, oil refining, and the development of chemical manufacturing capacity.
Following the meeting, SOCAR and CNCEC representatives exchanged a previously signed framework agreement providing for joint projects both in Azerbaijan and in third countries.
Photo: VCG
During President Aliyev's visit to China in April, a number of key intergovernmental and corporate agreements were signed, many of them focusing on the energy sector. Azerbaijan's Ministry of Energy signed agreements with China Datang Overseas Investment Co. Ltd and SOCAR Green LLC to assess and implement a 100 MW floating solar power plant and a 30 MW battery storage system on Lake Boyukshor.
A similar deal was signed for a 160 MW solar power plant. Furthermore, the Ministry of Energy, SOCAR Green, China Datang Overseas Investment Co. Ltd, and PowerChina Resources Limited signed a memorandum of understanding for the development of a 2 GW offshore wind project in the Azerbaijani sector of the Caspian Sea.
Yet cooperation between Azerbaijan and China is not limited to energy. On Friday, Azerbaijan’s Deputy Minister of Finance Anar Karimov held talks in Baku with delegations from the China Export & Credit Insurance Corporation (Sinosure) and the China Road and Bridge Corporation (CRBC). The discussions focused on China’s participation in modernizing Baku’s urban and suburban transport systems. According to Azerbaijani media, the Chinese side expressed strong interest in these initiatives, as well as in engineering, construction, and financing of large-scale infrastructure projects.
The involvement of major Chinese corporations, known for their advanced technology, financial capabilities, and project management expertise, is expected to bring tangible improvements to Azerbaijan’s infrastructure. The cooperation also reflects China’s broader Belt and Road strategy, which aims to enhance connectivity and economic integration across Eurasia.
In this context, Azerbaijan plays a key role as a strategic hub linking Asia and Europe. With Chinese companies becoming increasingly active in energy, green technology, and transport development, Baku is positioning itself as one of Beijing’s most reliable partners in the South Caucasus.
This growing partnership not only supports Azerbaijan’s economic diversification strategy but also strengthens China’s footprint in one of Eurasia’s most critical transport and energy corridors.
