BAKU, Azerbaijan, January 17. The State Oil
Company of Azerbaijan (SOCAR) has begun supplying Azerbaijani
natural gas to Austria and Germany through Italy starting from
January 2026, marking a significant milestone in the evolution of
the European gas market. These supplies not only expand the
geographical presence of Azerbaijani gas on the continent,
increasing the number of purchasing countries to sixteen, but also
form part of a broader strategy to diversify energy sources and
supply routes. Against the backdrop of the European Union’s
decision to fully cease Russian gas imports by the end of 2027,
these new supply routes play a key role in enhancing energy
security, reducing dependency on historically dominant suppliers,
and minimizing risks associated with geopolitical instability.
Statistics published by the independent regulator E-Control show
that Austria’s physical gas imports from neighboring countries in
October 2025 amounted to approximately 12.3 TWh, which is a 10.5%
increase compared to October 2024. Meanwhile, exports rose by 65.4%
to 6.8 TWh. As a result, net imports decreased by 21.7% to 1.52 TWh
compared to the previous year. These figures reflect growing
activity in the Austrian market, which, in light of the cessation
of supplies via the Baumgarten hub, has intensified imports through
Western European routes. The increased gas storage injections and
rising supply levels highlight that Austria is successfully
adapting to new market realities, compensating for the reduction of
traditional sources.
Along with the rise in imports, Gas Connect Austria reports
significantly higher consumption levels in 2025 compared to the
previous year, especially during the winter months. From January
through August 2025, gas consumption reached 50.39 TWh, 15.5%
higher than the same period in 2024, with peak demand occurring in
February and March when temperatures were moderately below
long-term averages. This suggests that, despite the advancement of
energy efficiency programs and the development of renewable energy
sources, natural gas continues to play a vital role in the
country’s energy balance, particularly during peak demand
periods.
A critical element of these changes has been the active use of
the West Austria Gas Pipeline (WAG). After the cessation of
supplies through Baumgarten, Austria began meeting its needs
primarily through the western entry at Oberkappel, with supplies
from Germany sharply increasing: from July through September 2025,
this route delivered 20.47 TWh of gas, compared to just 2.26 TWh
the year before. Gas supplies from Italy via the international
interconnection point Arnoldstein/TAG also increased, though they
remained relatively moderate at around 2.8 TWh.
Furthermore, Austria significantly boosted gas exports eastward,
through the Mosonmagyaróvár exit point to Hungary, where deliveries
grew from 0.05 TWh in 2024 to 7.59 TWh in the same period of 2025.
The increase in transit activity indicates that Austria’s gas
infrastructure not only meets domestic needs but also serves as a
crucial transit hub within the regional energy system.
The situation in Germany, Europe’s largest economy, also
reflects substantial changes in the gas market structure. According
to preliminary data from Bundesnetzagentur, Germany’s gas import
flows in 2025 reached 1,031 TWh, a 19.3% increase from 864 TWh in
the previous year. The main sources of supply were Norway (44%),
the Netherlands (24%), and Belgium (21%). The increase in liquefied
natural gas (LNG) deliveries to 106 TWh (approximately 10.3% of
total supplies) reflects the growing contribution of the global gas
market to Germany’s energy security, providing an additional buffer
against seasonal and geopolitical risks. In terms of overall
consumption in 2025, German households and the commercial sector
accounted for about 40% of the demand, while industry accounted for
the remaining 60%. The total consumption reached almost 864 TWh, a
2.2% increase from 2024. These trends reflect the resilience of
domestic gas demand despite climate fluctuations and the rising
share of alternative energy sources.
Against the backdrop of these dynamic changes, Azerbaijan is
increasingly becoming a significant and reliable gas supplier to
European markets. In 2025, the country produced 51.5 billion cubic
meters (bcm) of natural gas, of which 27.9 bcm came from the large
Shah Deniz field, 14.1 bcm from the Azeri-Chirag-Gunashli block,
1.6 bcm from the Absheron field, and 7.9 bcm from SOCAR. Total
exports amounted to 25.2 bcm, including 12.8 bcm to Europe, 9.6 bcm
to Türkiye (of which 5.6 bcm via TANAP), 2.3 bcm to Georgia, and
0.5 bcm to Syria. The European segment of the Southern Gas Corridor
— the Trans-Adriatic Pipeline (TAP) — has so far delivered over
54.3 bcm of gas to EU countries, significantly contributing to
supply diversification and strengthening energy security.
As representatives of the European Commission highlighted in an
interview with Trend, the development of TAP has not only
strengthened the stability of European energy markets and reduced
dependence on politically vulnerable suppliers but has also
promoted economic growth in transit countries such as Greece and
Italy, through job creation and enhanced regional integration.
Considering the European Union’s decision to completely phase
out Russian gas imports by September 30, 2027, with a possible
extension until October 31, 2027, in exceptional cases,
infrastructure changes and new supply routes are becoming
critically important. Specifically, the regulation foresees a
gradual cessation of Russian gas imports starting in the spring of
2026, increasing the need for sustainable alternative sources. In
this regard, the delivery of Azerbaijani gas to Austria and Germany
clearly demonstrates how regional energy strategies and supply
diversification contribute to reducing systemic risks.
Looking ahead, the key issue lies not only in maintaining supply
volumes but also in developing infrastructure capable of ensuring
flexibility and resilience in the face of intensifying competition
for energy resources and changing climate demands. Projects aimed
at expanding the capacity of Western routes, such as the expansion
of the WAG Loop, as well as strengthening the integration of
European gas transport networks, will play an increasingly
important role in ensuring energy stability. In the medium term,
this could open up additional opportunities for increasing the
share of gas from Azerbaijan and other regions, strengthening the
position of Central and Eastern European countries in the energy
market.
Against this backdrop, it’s becoming clear that Azerbaijan is
not only expanding its supply geography but also building trust
with European consumers as a reliable energy supplier capable of
adapting to the rapidly changing geopolitical and market
environment. New routes and increased deliveries mark a broader
transformation of the European energy landscape, shifting from
dependence on a limited number of suppliers to a more diversified,
resilient, and integrated supply system.