Iran and Azerbaijan Negotiate Energy Trade and Transport Links
President Masoud Pezeshkian and Azerbaijani officials met in Tehran to expand electricity imports, oil and gas trade, and regional transportation connectivity.
Iranian and Azerbaijani officials held a series of high-level meetings in Tehran from September 28 to 30, 2026, to accelerate joint economic and energy projects. Masoud Pezeshkian, President of Iran, met with Azerbaijani Deputy Prime Minister Shahin Mustafayev to advocate for expanded land, air, and rail connections between Tehran and Baku. Pezeshkian stated that strengthening these routes is essential for consolidating ties across security, political, and economic fields.
Energy cooperation formed a central pillar of the talks. Officials discussed increasing electricity imports from Azerbaijan to Iran for the winter months, including the implementation of gas-for-electricity swaps. Discussions focused on completing joint hydroelectric plants at the border, specifically the Ordubad and Khudafarin projects, and attracting Iranian private investment for solar power in Nakhchivan. Technical expert groups will now assess grid interconnection points to determine the volume of imports.
Deputy Prime Minister Mustafayev also met with Iranian Oil Minister Mohsen Paknejad and Energy Minister Abbas Aliabadi to review the use of Iran's transmission network to reach regional markets. The delegations agreed to utilize joint working groups to finalize these agreements. Officials attributed the diplomatic momentum to the cordial relations between President Pezeshkian and Azerbaijani President Ilham Aliyev.
