Energy imports: Germany wants to import more oil and gas from Azerbaijan

Germany aims to significantly increase its imports of oil and gas from Azerbaijan, according to Chancellor Friedrich Merz following a meeting with Azerbaijani President Ilham Aliyev at the Chancellery in Berlin. During their discussion, Merz stated they explored opportunities for expanding Germany's gas procurement from Azerbaijan. According to Aliyev, Azerbaijan is willing to boost its deliveries but would require requests beyond the existing ten-year contract, which currently stipulates annual gas supplies of 1.5 billion cubic meters. Additionally, infrastructure upgrades would be necessary to handle larger volumes. Gas shipments from Azerbaijan to Germany began early this year. The volume outlined by Aliyev covers only a fraction of Germany’s consumption, which stood at 845 terawatt-hours last year. The 1.5 billion cubic meters equate to approximately 15 terawatt-hours, less than two percent of Germany’s total usage. The European Union and Azerbaijan had agreed in 2022 to expand gas deliveries amid the ongoing Russian war against Ukraine. At the time, EU Commission President Ursula von der Leyen announced plans to raise imports from 8.1 billion cubic meters annually to 20 billion within a few years. According to earlier plans, deliveries should have reached 12 billion cubic meters per year by 2023. However, these targets were missed. In 2025, 11.3 billion cubic meters of Azerbaijani gas were delivered to the EU, accounting for nearly four percent of all EU gas imports. Merz mentioned after his meeting with Aliyev that oil deliveries from the region could become crucial for Germany, particularly for southern regions where infrastructure already exists or can be expanded. Energy imports from Azerbaijan are intended to be diversified and may include hydrogen in the future. Azerbaijan derives a large portion of its state revenue from oil and gas exports. Since Russia’s gas imports to the EU largely ceased following the start of the war in Ukraine, Azerbaijan has grown in importance for the bloc. Merz expressed hopes for greater stability in the region through expanded business ties with Azerbaijan. However, relations with Azerbaijan remain controversial due to Aliyev’s authoritarian rule and the country’s actions in the Nagorno-Karabakh region in 2023. Azerbaijan captured the area, which is internationally recognized as part of Azerbaijan but was predominantly inhabited by Armenians. The displacement of tens of thousands of people from the region drew international criticism. Both countries reached a peace agreement in 2025. Merz referred to the deal during his meeting with Aliyev as a “historic agreement” that could stabilize the region and foster more economic cooperation. Azerbaijan’s government has been under scrutiny for its human rights record and political repression. Despite these concerns, Germany continues to pursue closer energy ties with the country as part of its broader strategy to diversify energy sources away from Russian imports. The expansion of energy partnerships with Azerbaijan comes at a time when Europe is seeking alternative suppliers to reduce dependency on Russian fossil fuels. While some European nations have criticized Azerbaijan’s policies in Nagorno-Karabakh, others see potential for increased trade and investment. Germany’s approach reflects a pragmatic balance between strategic interests and regional stability. Infrastructure projects are critical to achieving higher import levels. Existing pipelines and storage facilities must be upgraded to accommodate increased flows. This includes both gas and potentially oil, depending on market demands and geopolitical considerations. Merz emphasized the need for continued dialogue with Azerbaijan to ensure that energy cooperation aligns with broader European goals. He noted that the current agreement provides a foundation for further collaboration, including the possibility of hydrogen exports in the future. These developments underscore Germany’s commitment to securing reliable energy supplies while navigating complex geopolitical landscapes.