VNG AG Eyes Long-Term Gas Deals with Azerbaijan

VNG AG is exploring long-term agreements to secure natural gas supplies from Azerbaijan, spanning 15-20 years. This was revealed by Oliver Hill, Senior Vice President and Head of Corporate Development at VNG AG, during a panel session at the German-Azerbaijani Connectivity Conference in Baku.

The company's cooperation with Azerbaijan encompasses both immediate and future objectives. Short-term, VNG AG aims to ensure reliable energy supplies for Europe, particularly natural gas. Long-term, the focus is on transitioning the energy sector toward decarbonization.

Hill noted that VNG AG has already begun importing gas from Azerbaijan since the start of the year, though current volumes are modest. "This is the beginning, the first step. We would like to increase these volumes," he stated, emphasizing the importance of expanding cooperation.

In the long run, VNG AG is keen on developing the energy transition between Europe and Azerbaijan, including renewable energy investments. Hill suggested that increasing Azerbaijan's focus on renewable energy could free up additional natural gas for export, boosting revenues and funding infrastructure development. This could also pave the way for future supplies of hydrogen and biomethane to Europe.