SOCAR Begins Supplying Gas to Croatia, Strengthening European Energy Security

On September 1, 2024, the State Oil Company of Azerbaijan (SOCAR) began supplying gas to Croatia, marking a significant milestone in the energy partnership between the two countries.

In its statement, SOCAR emphasized the importance of this event in strengthening energy security across the entire continent. "The supply of Azerbaijani gas to Croatia, carried out in partnership with PPD and MET Group, further solidifies our country’s position as a key energy partner for Europe," SOCAR noted.

This move is part of a broader strategy to diversify energy resources and reduce Europe’s dependence on traditional suppliers, particularly Russia.

Croatia now joins a growing list of countries benefiting from Azerbaijani gas, including Turkey, Georgia, Italy, Greece, Bulgaria, Romania, Hungary, Serbia, and Slovenia. For Croatia, the introduction of Azerbaijani gas is not just an economic deal but a strategic maneuver to enhance energy security in the face of ongoing geopolitical uncertainty. As the war in Ukraine and European Union sanctions on Russian energy imports continue to reshape the continent's energy landscape, Croatia's shift towards Azerbaijani gas reflects a broader trend of seeking stable and diversified energy sources.

Currently, natural gas accounts for about 26% of primary energy consumption in Croatia. The influx of Azerbaijani gas is expected to support the country’s transition to cleaner energy by replacing more polluting sources like coal. This aligns with Croatia’s long-term goals of improving energy efficiency and environmental sustainability.

Moreover, the new gas supplies are likely to lead to further liberalization of Croatia’s energy market and spur infrastructure development. Croatia is already working on expanding its gas transmission networks to accommodate the increased imports and ensure supply reliability. The availability of Azerbaijani gas could also stimulate ongoing projects like the Ionian-Adriatic Pipeline (IAP), which is designed to connect Croatia with other regional markets, thereby increasing competition within the gas sector.

From an economic standpoint, the competitive pricing of Azerbaijani gas could lead to lower energy costs for Croatian consumers and businesses. This, in turn, could stimulate economic activity, particularly in energy-intensive industries, and contribute to overall economic resilience by reducing energy expenditures.