PPD: Partnership with SOCAR to strengthen our position for upcoming heating season

Croatia's Prvo Plinarsko Društvo d.o.o. (PPD) expects that its partnership with the State Oil Company of Azerbaijan (SOCAR) on gas supplies to Croatia will strengthen its position for the upcoming heating season, an official representative of PPD said in an exclusive interview with Report.

"PPD remains committed to ensuring a reliable and secure supply of natural gas for Croatia and our valued customers, while fostering partnerships with reliable partners. While we cannot disclose the specific volumes of the contract [with SOCAR for gas supplies], we can confirm that the announced partnership will bolster our portfolio for the upcoming heating season," the company noted.

PPD notes that it has started “productive cooperation” with SOCAR since September 1, 2024, which “further increased the security of natural gas supplies” for Croatia ahead of the winter season. SOCAR began gas supplies to Croatia through PPD and the MET Group.

However, the companies do not disclose either the volumes of supplies or the terms of the gas agreements with Azerbaijan. As for the route through which Azerbaijani gas can reach Croatia, PPD explained to the Croatian branch of Forbes that gas is supplied via the Southern Gas Corridor system and the Greece-Bulgaria interconnector.

“Bulgaria has joined the TAP pipeline (via ICBG), which opened the market of South-Eastern and Central Europe for SOCAR. Thus, gas from Azerbaijan is supplied to Croatia via Bulgaria, Serbia and Hungary, ensuring a safe and stable supply of fuel to the region,” PPD said.

Met Group told the same publication that “the gas is not physically transported through neighboring countries and interconnectors, but is delivered to the domestic market” through Met Croatia Energy Trade on behalf of SOCAR. “For this cooperation with SOCAR, natural gas is not physically transported through neighboring countries and gas interconnectors, but is delivered to the domestic market through Met Croatia Energy Trade on behalf of SOCAR,” said MET Group, whose headquarters are in Switzerland.

When asked where the company gets its gas from, it said that it imports liquefied natural gas (LNG) from various sources, thanks to the fact that it has one of the most diversified LNG import structures in Europe and leases long-term gas supply capacities in Germany, Croatia and Spain.

PPD, in turn, notes that in addition to purchasing gas from SOCAR and through the LNG terminal, it also ensures gas supplies through bilateral contracts with the largest energy companies in the region and purchases on European stock exchanges.

Kamil Mahmudov, Nigyar Abbasova