BAKU, Azerbaijan, June 1. EU–Azerbaijan energy cooperation is anchored in a shared interest in energy security, diversification and reliable connectivity between Europe, the South Caucasus and the wider Caspian region, Director of the Energy Platform Task Force, Directorate-General for Energy at the European Commission, Cristina Lobillo Borrero said in an exclusive interview with Trend ahead of the Baku Energy Week.
She pointed out that Azerbaijan has made an important contribution to the EU’s diversification efforts, in particular through the Southern Gas Corridor. In 2025, Azerbaijan supplied 11.3 bcm of natural gas via the Southern Gas Corridor to EU Member States, added Borrero.
"At the same time, our partnership is no longer only about gas. The EU-Azerbaijan strategic energy partnership also covers renewable energy, energy efficiency, hydrogen, and methane-emissions reduction. These areas are becoming more important as Europe accelerates its energy transition and as Azerbaijan develops its own clean-energy potential. For the next phase, I see three priorities. First, maintaining reliable and competitive energy supplies in line with market demand. Second, ensuring that any new infrastructure is commercially sound, future-oriented and compatible with Europe’s long-term energy trajectory. Third, deepening cooperation on clean energy, methane mitigation, electrification, grids and investment frameworks. This is how we can combine security today with readiness for tomorrow," she said.
Borrero went on to add that the current situation in the Middle East is a clear reminder that energy security remains exposed to geopolitical shocks.
"Even where there is no immediate shortage, disruptions or risks around critical routes can have a direct impact on prices, supply chains and confidence in the market. The EU response has two main dimensions. The first is immediate preparedness, on which we, the Commission, is working closely with Member States, the International Energy Agency (IEA) and energy companies. This allows us to monitor developments, assess stocks and storage levels, and prepare co-ordinated responses where needed. Recent discussions have focused in particular on oil market developments and possible regional constraints, including jet fuel, linked to the conflict in the Middle East," she said.
Borrero pointed out that the second dimension is structural. "In our AccelerateEU Communication, we set out measures to address rising energy costs and volatile fossil-fuel markets, particularly in light of the escalating Middle East conflict. The aim is to protect consumers and businesses, strengthen coordination, accelerate home-grown clean energy, upgrade grids and mobilise investment. This also means working with reliable partners, diversifying suppliers and routes, supporting more resilient infrastructure, and accelerating the clean-energy transition. The objective is not simply to replace one dependency with another. It is to build a more diversified, flexible and resilient energy system."
She noted that the Southern Gas Corridor remains an important part of Europe’s diversification architecture.
"It has provided reliable gas supplies to the EU and has contributed to reducing the EU’s dependence on Russian gas. Looking ahead, gas imports from Azerbaijan through the Southern Gas Corridor (SGC) will continue to play an important role, especially in the context of geopolitical volatility and the EU’s objective to fully phase out Russian energy imports. The EU remains a reliable trade partner for Azerbaijani gas, and Azerbaijani supplies contribute to strengthening security of supply during the current Middle East crisis. On expansion, the key principle is that further capacity increases should be market-based. The first level of TAP expansion, adding 1.2 bcm per year, has already taken place. Further expansions need to be justified by market prices, demand and regular market tests. This is important both for commercial credibility and for consistency with Europe’s evolving gas-demand outlook.
There is political recognition of the SGC’s role in diversification, but the EU can no longer fund fossil fuels infrastructure from its budget. Therefore, any further expansion should be underpinned by commercial investment and, where appropriate, potential financing from international financial institutions. The focus should be on infrastructure that strengthens security of supply without creating new long-term dependencies," Borrero explained.
She noted that Azerbaijan can play an important role in EU energy transition.
"The EU’s climate objective is clear: climate neutrality by 2050 is a legally-binding target under the European Climate Law. At the same time, the transition must be secure, orderly and affordable. That means natural gas will continue to play a role during the transition, particularly for security of supply, system flexibility and certain industrial uses. The EU’s strategy is to reduce fossil-fuel demand structurally through energy efficiency, renewables, electrification, storage, grids and demand-side flexibility. AccelerateEU reinforces this direction: reducing exposure to volatile fossil-fuel markets is both a climate objective and an energy-security imperative. Partner countries such as Azerbaijan can play an important role in this transition period in two ways. First, by remaining reliable suppliers where gas is still needed, contributing to diversification and security of supply. Second, by working with the EU on reducing the emissions footprint of the energy sector," said Borrero.
She believes that methane mitigation is particularly important.
"Azerbaijan has joined the Global Methane Pledge, and SOCAR joined the Oil & Gas Methane Partnership 2.0 in 2024. This provides a strong basis for practical cooperation on measurement, reporting, verification, leak detection and repair, and reducing routine flaring and venting. This is not only about climate policy. It is also about improving efficiency, reducing waste and modernising the oil and gas sector. The EU–Azerbaijan energy partnership already provides several mechanisms for cooperation: the High-level Energy Dialogue, the Southern Gas Corridor Advisory Council, the Green Energy Advisory Council, and investment-focused exchanges with international financial institutions and European companies. In the context of the Southern Gas Corridor Ministerial meetings in March, the EU and Azerbaijan also convened a Green Connectivity Investment Roundtable with international financial institutions (IFIs) and EU companies to discuss regional energy connectivity, renewable energy and energy efficiency. The EU is prepared to examine additional avenues of support, including guarantees, blended finance and targeted regulatory assistance," Borrero said.
On grids, she said the EU closely follows the planned Caspian–Black Sea–Europe Green Energy Corridor as part of broader discussions on future connectivity between the Caspian region, the South Caucasus and Europe.
"The key point for the EU is that such projects need to demonstrate real system value: market integration, security of supply, technical robustness, commercial credibility and contribution to decarbonisation. For this project, the next essential step is to pursue the relevant EU assessment processes, including Project of Mutual Interest (PMI) status. The PMI process is based on defined criteria, including market integration, competition, diversification and contribution to EU climate and energy goals. The biggest untapped opportunities are in areas where energy security and decarbonisation reinforce each other: renewable power generation, storage, grid flexibility, digitalisation, electrification of oil and gas operations, and methane mitigation.
European companies can bring technology, financial capacity and practical project experience. Azerbaijan and the wider Caspian region can offer significant clean-energy potential and a strategic location linking Europe, the South Caucasus and Central Asia. The task now is to turn this potential into bankable projects, underpinned by predictable rules, sound investment cases and mutual benefit," she concluded.
