Germany’s VNG AG is considering signing 15-20 year long-term agreements for the supply of natural gas from Azerbaijan.
Oliver Hill, the company’s Senior Vice President, Head of Corporate Development and Chief Representative, said during a panel discussion at the Germany-Azerbaijan Connectivity Conference that cooperation between VNG AG and Azerbaijan covers both short- and long-term objectives.
According to Hill, the immediate priority is to contribute to reliable energy supplies to Europe, particularly natural gas. In the longer term, the focus is on transforming the energy sector and supporting the transition from fossil fuels toward a lower-carbon energy system.
Hill noted that VNG AG has already started importing natural gas from Azerbaijan this year. While current supply volumes remain relatively modest, he emphasized that increasing these volumes is one of the company’s key objectives and an important part of its cooperation with Azerbaijan.
He added that VNG AG is interested in supporting the development of the energy transition between Azerbaijan and Europe, including decarbonization and the creation of relevant energy interconnections. In this context, the company is prepared to conclude long-term gas supply agreements with Azerbaijan for a period of 15-20 years.
Hill also identified increased investment in the development of renewable energy sources within Azerbaijan as a potential area of cooperation.
According to him, expanding renewable energy capacity could free up additional natural gas volumes for export to Europe. This could help increase revenues from gas exports and enable Azerbaijan to channel these funds into the development of its energy and other infrastructure.
In the longer term, the development of such infrastructure could also create additional opportunities for supplying Europe with new forms of energy, including hydrogen and biomethane.
https://report.az/energetika/oliver-hill-vng-ag-azerbaycanla-qaz-tedarukune-dair-uzunmuddetli-sazisler-baglamaga-hazirdir