Türkiye’s state energy company BOTAŞ and Azerbaijan’s SOCAR have signed a long-term natural gas supply agreement that will deliver 33 billion cubic meters (bcm) of Azerbaijani gas to Türkiye over 15 years, beginning in 2029.

The deal was signed on Monday during Baku Energy Week as part of broader new production investments at the Absheron gas-condensate field in the Caspian Sea. French energy major TotalEnergies and the UAE’s Abu Dhabi National Oil Company (ADNOC) are also involved in the development alongside SOCAR.

Türkiye’s Energy and Natural Resources Ministry described the agreement as “a new step in the energy partnership” between the two countries. It said the deal advances Ankara’s goal of becoming a regional energy hub while strengthening energy security for Türkiye, its neighbors, and Europe.

The Absheron field, located approximately 100 kilometers southeast of Baku, is estimated to hold around 350 billion cubic meters of natural gas and 45 million tons of condensate. It is one of Azerbaijan’s largest offshore gas discoveries and a cornerstone of the country’s plans to expand gas exports.Production at Absheron began in 2023 under the first development phase, led by SOCAR and TotalEnergies. Further expansion projects are expected to significantly boost output in the coming years.

In a message delivered at the opening of Baku Energy Week, Turkish President Recep Tayyip Erdoğan emphasized the growing energy cooperation between Türkiye and Azerbaijan. He pointed to flagship projects including the Baku-Tbilisi-Ceyhan (BTC) oil pipeline, the Baku-Tbilisi-Erzurum (BTE) gas pipeline, and the Trans-Anatolian Natural Gas Pipeline (TANAP).

Erdoğan also referenced successful joint work in the Azeri-Chirag-Gunashli and Shah Deniz fields, as well as the Shafag-Asiman project.“There are significant opportunities ahead of us to further develop our cooperation on the export of Turkmen gas via Azerbaijan and Türkiye,” Erdoğan said, referencing the long-discussed Trans-Caspian pipeline.

The proposed Trans-Caspian pipeline would transport Turkmen gas across the Caspian Sea to Azerbaijan, from where it could flow to Türkiye and onward to Europe through the Southern Gas Corridor. Although the project has yet to advance to construction, it remains a strategic option for diversifying both Caspian exports and European energy supplies.

The new BOTAŞ-SOCAR agreement underscores the continued strategic alignment between Türkiye and Azerbaijan in the energy sector and is expected to play an important role in regional energy dynamics throughout the 2030s and beyond. (ILKHA)