Azerbaijan begins gas deliveries to Germany under 10-year SEFE contract

Azerbaijan has become a direct pipeline-gas supplier to Germany, a milestone in Berlin's drive to secure energy after severing its dependence on Russian supply. Since 2026, SEFE (Securing Energy for Europe) — a trader owned by the German government — has been importing 1.5 billion cubic metres of natural gas a year from Azerbaijan under a ten-year contract.

The commercial relationship was elevated to strategy on 21 July 2026, when Chancellor Friedrich Merz and President Ilham Aliyev signed a Joint Declaration on the Strategic Agenda for Bilateral Partnership in Berlin. Merz pointed to "Azerbaijan's expanding natural gas resources" and voiced hope that southern Germany would increasingly be supplied with Azerbaijani gas — a clear signal Berlin wants volumes to grow.

Demand is already building beyond the SEFE deal. German utility Uniper, which buys Shah Deniz gas routed via Italy, has said it intends to lift its purchases to 1.5 bcm a year under new agreements. Bilateral trade reached $573 million in the first half of 2026, with Germany importing both crude oil and gas from Azerbaijan.

The gas travels west along the Southern Gas Corridor — the TANAP and TAP pipelines — the same infrastructure carrying Azerbaijani volumes to Italy and Southeast Europe. With the corridor already heavily utilised, meeting Berlin's appetite for larger flows will hinge on expanding capacity, a recurring theme in Baku's energy diplomacy with the EU.

For Azerbaijan, a foothold in Europe's largest economy anchors its post-2022 role as a diversification partner. As Aliyev put it, cooperation between the two countries in energy "will extend across a broad range of areas."

Sources: Azerbaijan Today and News.az.