What's Happening?
Azerbaijan has increased its natural gas production by 2.4% in 2025, producing 51.5 billion cubic meters, according to the Azeri Ministry of Energy. This increase comes as Europe faces an energy crisis,
with rising gas prices due to increased demand and geopolitical tensions. Azerbaijan's gas exports to Europe, however, have slightly decreased, with 12.8 billion cubic meters supplied last year. The country has also signed a new agreement with Hungary to supply natural gas for the next two years, strengthening its role as a key supplier to Europe.
Why It's Important?
The increase in Azerbaijan's natural gas production is significant as Europe seeks to reduce its reliance on Russian gas imports by 2027. Azerbaijan's role as a key supplier is crucial in this transition, especially as Europe plans to increase LNG imports from the United States. The strategic partnership with Hungary further solidifies Azerbaijan's position in the European energy market. However, the slight decrease in exports to Europe highlights challenges in meeting the EU's energy demands amid geopolitical tensions.
What's Next?
Azerbaijan aims to meet its export target of 20 billion cubic meters per year by 2027. The country will likely continue to strengthen its energy partnerships with European nations. As Europe moves towards reducing Russian gas imports, Azerbaijan's production and export strategies will be closely monitored. The ongoing geopolitical tensions and Europe's energy policies will play a significant role in shaping Azerbaijan's future in the energy market.
