VNG AG seeks to increase Azerbaijan gas imports and long-term energy cooperation

German energy company VNG AG has expressed strong interest in increasing natural gas imports from Azerbaijan and establishing long-term supply agreements. Oliver Hill, VNG AG’s Vice President and Head of Corporate Development, stated during the Germany-Azerbaijan Strategic Partnership and Connectivity Conference that the company seeks to expand cooperation with the State Oil Company of the Azerbaijan Republic (SOCAR).

While current contracts are relatively short-term, VNG AG is prepared to enter into agreements spanning 15 to 20 years. This long-term framework is intended to ensure stable gas supplies for Germany while fostering investment opportunities within Azerbaijan. Beyond natural gas, the proposed partnership aims to cover energy transition sectors, including biomethane, renewable energy sources, hydrogen, and decarbonized fuels.

Hill emphasized that the collaboration focuses on the movement of molecules, noting that VNG AG is interested in hydrogen as part of a broader decarbonization strategy. The company also highlighted the importance of ensuring that gas supplied to Europe meets the European Union’s methane emission standards.