S.N.G.N. ROMGAZ S.A. and SOCAR Trading, a subsidiary of the State Oil Company of the Republic of Azerbaijan, signed on December 16th, 2022, the first individual contract for gas deliveries from Azerbaijan to Romania. The individual contract allows for scheduled gas deliveries starting with January 1st, 2023, through the Southern Corridor, by using transportation capacities of the TAP and IGB pipelines and of the Bulgarian and Romanian transmission systems.
The contract is based on the General Agreement recently concluded between the two companies, with unlimited term.
The signing of this contract ensures the possibility to acquire natural gas quantities from Azerbaijan in order to fulfil the potential consumption needs with import gas. The contract thus serves the strategic objectives of security of supply and diversification of gas sources.
The General Agreement for deliveries of natural gas from Azerbaijan as well as this first individual contract are the result of an excellent cooperation between S.N.G.N. ROMGAZ S.A. and SOCAR, a cooperation initiated at the beginning of 2022 and formalized by signing a Memorandum of Understanding in June.
The parties plan to continue their cooperation relationship and to enhance the mechanisms for natural gas deliveries from Azerbaijan to Romania.
Established in 1993, briefly before the Azeri-Chirag-Guneshli (ACG) production sharing agreement was signed by Azerbaijan’s President Heydar Aliyev in 1994, the State Oil Company of Azerbaijan Republic (SOCAR) was envisaged to be an integrated oil and gas company with assets across the entire value chain. While it has traditionally been an upstream oil and gas focused company, SOCAR now has a considerable presence in transport infrastructure and downstream, both in Azerbaijan and worldwide.
About SOCAR Trading
SOCAR Trading SA, headquartered in Geneva, has successfully diversified its business to include Azeri and third-party crude oil, LNG, and distillates. The company employs more than 200 people across its main trading hubs, which in addition to Geneva include Dubai, Houston, London, and Singapore. Originally incorporated as the marketing arm of the State Oil Company of Azerbaijan Republic (SOCAR), SOCAR Trading is a wholly owned state entity but is a fully independent Swiss company and major global trading house.