EU must act realistically on gas if it wants secure supply from Azerbaijan

The European Union must reassess its financing and long-term contracting policies if it wants to continue and expand natural gas imports from Azerbaijan, warning that Baku may explore alternative markets in the East and South if current restrictions remain, President Ilham Aliyev said on Wednesday

“The EU market is premium in terms of legislation, rules, and pricing, but we should not look only to the West. We can look to the East, to the South. That is important for the future of Azerbaijan’s gas industry and Europe’s energy security,” Aliyev said.

Speaking at the 11th Southern Gas Corridor Advisory Council and the 3rd Green Energy Advisory Council in Baku, Aliyev stressed that despite Azerbaijan's commitment, key barriers remain—particularly the European Investment Bank’s (EIB) ban on fossil fuel financing and a lack of long-term purchase contracts.

Aliyev said the EU requested an increase in Azerbaijani gas exports in 2022 amid energy shortages, prompting Azerbaijan to ramp up supply from 8 bcm in 2021 to nearly 13 bcm in 2024, with more countries like Croatia becoming recipients. However, he noted that further expansion now depends on the removal of financing restrictions.

“All our major energy projects—oil or gas—were funded on a 70% borrowed, 30% corporate financing model. Now, European institutions must return to that approach,” he said.

He also called on the European Commission to recognize the gap between climate goals and energy realities. "They say they’ll be carbon neutral by 2050, but ask me to invest in gas. If I don’t have a long-term contract, where will that gas go?"

Aliyev highlighted Azerbaijan’s growing energy reach, with gas exports now covering 12 countries, including 10 in Europe, 8 of them EU members. He confirmed Croatia and Albania have joined the network, with gasification projects already agreed for Albania and planned in Bulgaria.

He also said Azerbaijan’s efforts in green energy continue in parallel, including a 4GW Black Sea green energy cable from Azerbaijan to Romania.

“The European Commission should take off the glasses and look at the world realistically. Instead of dividing the Caucasus into favorites and outcasts, they should act as true partners. We are ready for that,” Aliyev concluded.

N.Tebrizli