Ukraine: Naftogaz Signs First Gas Deal With Azerbaijan's SOCAR

Ukraine’s national energy company Naftogaz has signed its first agreement to import natural gas from Azerbaijan, the company announced in a July 28 press release, Orda.kz reports.

The deal comes at a critical time, as Ukraine’s gas storage levels have dropped to their lowest in over a decade. Ongoing Russian strikes on energy infrastructure have severely affected domestic production, with Naftogaz reporting a 50% loss in output.

To prepare for the winter heating season, Ukraine has ramped up gas imports.

Naftogaz signed the agreement with the Ukrainian subsidiary of Azerbaijan’s state oil company SOCAR. The initial shipment is being delivered via the Trans-Balkan pipeline along the Bulgaria–Romania–Ukraine corridor — a route that offers Ukraine a new gas supply channel. Initial reports on the potential deal surfaced in mid-July.

Naftogaz CEO Serhii Koretskyi called the agreement a “small volume but strategically important step,” emphasizing its role in diversifying supply sources and laying the groundwork for future cooperation.

Ukraine’s Energy Minister Svitlana Hrynchuk noted that the Trans-Balkan route will also allow access to LNG terminals in Greece and Türkiye, as well as Romanian and potentially Bulgarian offshore gas.

Ukraine has also secured multiple supply contracts for U.S. liquefied natural gas through Poland, according to The Kyiv Independent. Naftogaz has signed four agreements with Orlen, totaling 440 million cubic meters (mcm) of gas. The latest, signed on July 2, adds 140 mcm to that volume.

According to Bloomberg, Ukraine may import up to 5 billion cubic meters of gas from Europe in 2025 — a potential record.