Investing.com -- State-owned German trading company, SEFE, is set to announce a 10-year agreement to purchase gas from Socar, the state-owned company in Azerbaijan, according to a Bloomberg report on Monday.
This agreement allows SEFE to procure up to 15 terawatt-hours of gas annually, equivalent to approximately 1.5 billion cubic meters per year. The report indicated that the gas is expected to be transported to Europe via the Trans Adriatic Pipeline (TAP). This pipeline traverses Northern Greece, Albania, and the Adriatic Sea before reaching the southern shores of Italy.
SEFE, an acronym for Securing Energy for Europe, has been proactive in securing new supply contracts. The region has become more reliant on global supplies since the majority of its Russian pipeline gas was lost in 2022. Despite Norwegian production operating at nearly full capacity, Europe continues to require additional supplies while it awaits the commencement of more liquefied natural gas export facilities in the US.