VNG AG considers 15-20-year gas supply deals with Azerbaijan

VNG AG is considering long-term agreements to purchase natural gas from Azerbaijan for 15-20 years, VNG AG Senior Vice President, Head of Corporate Development and Chief Representative Oliver Hill said at a panel session of the German-Azerbaijani Connectivity Conference in Baku, Report informs.

According to Hill, cooperation between VNG AG and Azerbaijan includes both short- and long-term goals . The short-term objective is to ensure reliable energy supplies, particularly natural gas, for Europe, while the long-term goal is to transform the energy sector and move from fossil fuels toward a decarbonized energy system.

Hill said V NG AG has already been importing gas from Azerbaijan since the beginning of this year, although volumes remain relatively small.

"This is the beginning, the first step. We would like to increase these volumes - this is one of our goals and an important part of our cooperation," he said.

In the long term, the company is interested in developing the energy transition between Europe and Azerbaijan, including decarbonization and the creation of corresponding energy connections.

"In particular, we are ready to conclude long-term agreements for gas supplies from Azerbaijan for 15-20 years," Hill said.

He also noted that increasing Azerbaijan's investment in renewable energy development within the country could be another area of cooperation.

According to Hill, this could free up additional natural gas volumes for export to Europe, increase revenues from such supplies and channel the proceeds into the development of Azerbaijan's energy and other infrastructure.

In the longer term, he added, the development of such infrastructure could create additional opportunities to supply Europe with new forms of energy, including hydrogen and biomethane.