Italy remains the largest buyer of Azerbaijani gas

Italy, one of the European Union's largest economies, solidified its position as a key importer of Azerbaijani natural gas in 2024, despite a notable decline in domestic gas consumption. The country imported 58.7 billion cubic meters (bcm) of natural gas, meeting most of its annual demand of 61.7 bcm—a 2.5% drop compared to 2023. This data, reported by the Italian energy market regulator GME, highlights shifts in Italy’s energy sourcing and consumption patterns.

According to the GME bulletin, Italy's gas consumption reached a 15-year low of 61.7 bcm in 2024, driven primarily by reduced reliance on gas for electricity generation. Imports also declined, with the 58.7 bcm figure marking the lowest level since 2015.

Azerbaijan's Role in Italian Gas Imports

Azerbaijan emerged as the third-largest supplier of natural gas to Italy, delivering 10.3 bcm via the Southern Gas Corridor in 2024, slightly down from 10.7 bcm in the previous year. Azerbaijani gas accounted for a significant share of Italy’s total imports, underscoring the strategic importance of the Trans Adriatic Pipeline (TAP) in diversifying Europe’s energy supply.

The Southern Gas Corridor is a key route for Azerbaijani gas exports to Europe, and Italy remains its primary destination. Out of Azerbaijan’s total EU gas exports of 12.9 bcm in 2024, a substantial 10.3 bcm, or nearly 80%, was directed to Italy. This highlights Italy's dependence on Azerbaijan for energy security, even as the EU seeks broader diversification.

Algeria retained its position as Italy’s leading gas supplier, providing 21.1 bcm—nearly 36% of Italy's total imports—despite a year-on-year decline of 9%. Liquefied natural gas (LNG) imports ranked second, contributing 15 bcm, which also represented a drop of over 9% compared to 2023 levels.

Azerbaijan’s performance, although slightly reduced, demonstrates resilience in a competitive market. The TAP pipeline provides Italy and the EU with a vital alternative to traditional suppliers such as Russia, whose dominance in the European gas market has been challenged in recent years.

The decline in Italy's gas consumption aligns with broader trends in Europe, where the push for renewable energy and energy efficiency measures is reshaping the energy mix. However, Azerbaijan’s continued strong presence in the Italian market underscores the strategic value of the Southern Gas Corridor.

For Azerbaijan, maintaining and potentially expanding its role in the European market will depend on both stable production from the Shah Deniz field and further investments in energy infrastructure. Meanwhile, Italy’s evolving energy needs will likely influence the dynamics of this partnership in the years ahead.

As the EU intensifies its decarbonization efforts, the Azerbaijani-Italian energy relationship may evolve, potentially encompassing green energy initiatives alongside natural gas imports. For now, however, Azerbaijani gas remains a cornerstone of Italy's energy security.