Türkiye, Azerbaijan prepare for gas supply agreement from Karabakh field

Türkiye is negotiating a new agreement with Azerbaijan for the import of natural gas from the Karabakh oil and gas field, marking a significant step in diversifying Türkiye’s energy sources.

Turkish Energy Minister Alparslan Bayraktar confirmed that an agreement has been reached to commence gas imports from this field in 2028-2029, Caliber.Az reports citing local media.

Bayraktar emphasized the importance of diversifying Türkiye's gas supply, especially as existing agreements with Russia and Iran near expiration. "These agreements are about to expire, and we need to find alternative sources of gas," Bayraktar stated, underscoring the strategic need to secure new supplies and develop competition within Türkiye's domestic market.

As part of Türkiye’s broader energy strategy, Bayraktar revealed that in March, Türkiye began importing gas from Turkmenistan through a swap arrangement with Iran. "This year we will receive 1.3 billion cubic meters of gas from Turkmenistan via Iran," he said, further detailing how Türkiye has been expanding its gas infrastructure. Over the past decade, the country has invested significantly, now boasting enhanced import options that go beyond traditional pipeline imports.

Türkiye’s ability to meet its gas demand is also supported by its growing LNG infrastructure. Bayraktar noted that Türkiye has increased its LNG regasification capacity from 30 million cubic metres per day to 160 million cubic metres and plans to expand this to 200 million cubic metres in the near future. "Currently, about 25 per cent of Türkiye's gas needs are covered by LNG," he added.

In addition to diversifying imports, Bayraktar highlighted Türkiye’s efforts to develop its own energy resources. At the Sakarya field in the Black Sea, gas production is currently at 7 million cubic metres per day, with plans to ramp this up to 9 million cubic metres in April. By the third quarter of 2026, production is projected to reach 20 million cubic metres per day and eventually 40 million cubic metres per day by 2028.

The Karabakh oil and gas field, located 120 km east of Baku, is a key part of Azerbaijan's energy portfolio. The development of this field is part of a broader energy cooperation between Türkiye and Azerbaijan. In 2018, Azerbaijan's State Oil Company (SOCAR) and Norwegian company Equinor signed a production sharing agreement for the exploration and development of the Karabakh field, with Equinor selling its 50 per cent stake to SOCAR in December 2023. The project is set to become a cornerstone of Azerbaijan’s energy exports, with Türkiye poised to become a key recipient.

Furthermore, Minister Bayraktar confirmed that Türkiye has expressed its readiness to enter into long-term contracts to purchase additional volumes of natural gas from Azerbaijan, underscoring the importance of strengthening energy ties between the two countries.

"If Azerbaijan has additional volumes of gas in the next 15 years, our domestic market is open. Turkish industry, economy, and population are growing, and we are ready for long-term gas purchase commitments," he said.

Bayraktar also emphasized the crucial role of both Türkiye and Azerbaijan in expanding the Southern Gas Corridor, a key project for enhancing the security of Europe’s energy supply. He noted that for the corridor to grow, the involvement and active cooperation of Europe are essential.

Türkiye’s aspirations to become a leading energy hub were also discussed, with Bayraktar asserting that his country is poised to double its gas transport to Europe in the coming years. He pointed to the Baku-Tbilisi-Ceyhan pipeline, which currently delivers 700,000 barrels of oil to global markets daily, as an example of the country’s established infrastructure. The combined capacity of the Trans-Anatolian Natural Gas Pipeline (TANAP) and the Trans Adriatic Pipeline (TAP) stands at 32 billion cubic metres per year.

Looking ahead, Bayraktar revealed that the necessary infrastructure to enable Azerbaijan to double its gas exports to Europe by 2027 is already in place. This development will strengthen Türkiye’s position as a central energy hub, facilitating the diversification of Europe’s natural gas supplies and enhancing energy security across the region. 

By Vafa Guliyeva