Azerbaijan's gas exports to Europe declined in the first half of 2026 from a year earlier, while the country diversified its export portfolio across multiple markets.
Azeri exports to Europe declined to 5.9bn m³ in January-June from 6.1bn m³ in the same period last year. The country continued to expand its export footprint by widening the number of its export markets and pursuing new buyers. State-owned Socar began supplying gas to Germany and Austria in 2026, while the Czech Republic, Slovakia and Italy are currently negotiating long-term gas supply agreements with Azerbaijan.
Overall gas exports from Azerbaijan rose on the year to 12.7bn m³ from 12.1bn m³. Supplies to Syria recorded the strongest growth, with exports reaching 700mn m³ in the first half of the year compared with no receipts a year earlier — Azerbaijan only began delivering to Syria in August 2025 after Socar signed a swap agreement with Turkey. Gas flows to Turkey were unchanged at 4.9bn m³ in January-June, while deliveries to Georgia edged up to 1.2bn m³ from 1.1bn m³ a year earlier (see graph).
The EU's planned phase-out of Russian gas by 2027 is forcing European buyers to diversify their supply sources.
But Azerbaijan's gas export infrastructure was built before the Russia-Ukraine conflict in 2022 and did not anticipate the increased supply requirements or heightened interest in Azeri gas, Azeri president Ilham Aliyev said. Expanding the country's gas export infrastructure requires additional financing, which is currently limited because European financial institutions have adopted green policies and are avoiding fossil fuel-related investments, he said. Azerbaijan needs long-term supply commitments from buyers, otherwise investments in production and infrastructure assets do not make economic sense, he added. Azerbaijan also has alternative export destinations, such as Syria and neighbouring countries, where gas demand is growing.
Azeri gas production continued to increase, reaching 25.3bn m³ in January-June from 25.2bn m³ a year earlier, although production trends varied across fields. The Shakh Deniz field made up 54pc of output in the first half of the year but production eased to 13.7bn m³ from 13.8bn m³ a year earlier. The Azeri-Chirag-Guneshli (ACG) complex accounted for 29pc of total output and was the only major asset to record growth during the period. The field produced 7.3bn m³ compared with 6.6bn m³ in January-June 2025.
Azerbaijan's investment and production plans envisage output growth across all fields, Aliyev said.
Azerbaijan is targeting annual gas exports to Europe of 20bn m³ from 2028. Long-term capacity bookings at the annual auctions would signal that long-term gas supply agreements are in place.
