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Azerbaijan Launches $480M Smart Gas Grid Project with UAE-Based Esyasoft

BAKU | July 17, 2025 — Azerbaijan is taking a major step toward energy modernization with a new $480 million contract between state-owned SOCAR and UAE-based Esyasoft Holding to design and deploy a nationwide “smart” gas distribution network.

The project, announced by SOCAR on Wednesday, aims to digitally transform gas distribution operations under the umbrella of SOCAR’s Azerigaz Production Union. Over a 14-year timeline, the initiative will introduce 2.5 million smart meters across the country and modernize the gas grid with cutting-edge technologies.

The overarching goals: improve operational efficiency, reduce gas losses, cut costs, and enhance customer satisfaction by leveraging advanced gas management systems.

The digital transformation plan includes:

  • Installation of smart pressure and temperature sensors;

  • Establishment of a Digital Solutions Lab to develop and test smart energy tools;

  • Workforce training in new technologies and international best practices;

  • Application of artificial intelligence for predictive maintenance and demand management;

  • Data security via integration with Azerbaijan’s national government cloud;

  • Development of a state-of-the-art centralized command center for real-time monitoring and control.

The agreement builds on a strategic cooperation framework signed last year during the COP29 climate summit in Baku. The new contract was formalized by SOCAR President Rovshan Najaf, Azerigaz Director General Azer Mammadov, and Esyasoft Holding CEO Bipin Chandra.

Officials say the investment will not only modernize infrastructure but also serve as a model for smart utility systems in the broader region.

“This marks a significant leap forward in our efforts to build a modern, efficient, and citizen-oriented gas distribution network,” SOCAR stated.

As Azerbaijan prepares to host COP29 later this year, the announcement underscores the country’s ambitions to align energy operations with global digitalization and sustainability trends.

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