In a pivotal shift for Eastern European energy flows, Ukraine’s state-owned Naftogaz has signed its first-ever gas supply agreement with Azerbaijan’s state-run SOCAR, leveraging the Trans-Balkan corridor to bypass Russian infrastructure for the trial delivery of Azerbaijani gas routed through Bulgaria and Romania directly into Ukraine.
The shipment marks Ukraine’s formal entry into the Trans-Balkan gas network as an importer, rather than merely a transit country, with Naftogaz GEO Serhiy Koretskyi describing it in a statement as “a small volume but a strategically important step” that marked “the beginning of a long-term partnership” with SOCAR and the region, AzerNews reported.
While neither side disclosed exact volumes or pricing, Ukrainian and Azerbaijani officials have been laying the groundwork for deeper energy integration. Earlier this month, both governments signed a roadmap to expand bilateral gas cooperation, potentially allowing Azerbaijan to use Ukraine’s massive underground storage and boosting EU-facing flows via Romania.
The Trans-Balkan route, previously designed for Russian southbound flows, has been repurposed for reverse flows in recent years, opening a key alternative for non-Russian gas to reach Ukraine and Southeast Europe. Kyiv is increasingly relying on Azerbaijani and U.S. LNG to offset declining Russian transits and stabilize its winter reserves.
The deal also carries long-term implications for Black Sea energy alignment. With SOCAR looking to expand its European footprint and Ukraine pushing to diversify away from legacy suppliers, the corridor could evolve into a more permanent artery for Azeri gas, especially if physical flows and commercial terms prove viable.
Russian pipeline exports to Europe via TurkStream rose to an average of 46 million cubic meters per day in May, a 10% increase over April, according to ENTSOG data. However, flows dropped sharply in June to around 37.6 million cubic meters per day, reflecting an 18% month-on-month decline tied to scheduled maintenance. Despite the pullback, total exports via TurkStream in the first half of 2025 reached approximately 8.3 billion cubic meters, marking a year-on-year increase of more than 7%.
By Charles Kennedy for Oilprice.com
More Top Reads From Oilprice.com
