Turkey has finalized a long-term agreement to import pipeline natural gas from Azerbaijan's Absheron offshore field. The contract stipulates the supply of 33 billion cubic metres of gas over a 15-year period, with deliveries scheduled to commence in 2029. This deal is expected to support the final investment decision for the second phase of the Absheron project.

Project Details and Development Plans

The Absheron field in the Caspian Sea is operated by TotalEnergies, with partners SOCAR and ADNOC. Currently, the first phase of the field produces approximately 1.5 billion cubic metres (Bcm) of gas annually, which is entirely consumed within Azerbaijan. Plans for the second phase aim to add an initial 1.5 Bcm per year of production, with the potential to eventually increase the field's total output to around 6 Bcm per annum. Partners are targeting a final investment decision for this expansion in 2026.

Technical and Infrastructure Aspects

The second phase development is expected to involve installing subsea production templates to gather hydrocarbons from new wells. The produced stream would then be transported via a 140-kilometre pipeline to onshore facilities for processing into natural gas and condensate. The Absheron field, which began production in 2023, holds an estimated 350 Bcm of recoverable gas reserves.

Strategic Energy Context

This agreement strengthens Azerbaijan's role as a major gas supplier to Turkey, complementing other sources such as Russian pipeline gas and US liquefied natural gas. In 2024, Azerbaijan exported about 11.5 Bcm of gas to Turkey. The gas is transported via the Southern Gas Corridor pipeline system, which also supplies gas from Azerbaijan to European markets through Turkey and Greece.