Complex regional geopolitics combined with the rich natural resources conditioned Azerbaijan's approach to energy security. Bordering three regional powers – Iran, Russia and Turkey- Azerbaijan managed to utilize its geographical position and abundant hydrocarbon resources to its own benefit by rising as a powerful actor in energy security both of the Caspian and Europe. Azerbaijan plays a strategic role in energy diversification of the EU as a producer state by conducting independent energy policy in the challenging security environment of the region. The country's national approach to the energy security can be understood in the context of state building objective and hierarchy of threats to national security. Unresolved Karabagh conflict, ambitious neighbors, undefined Caspian legal status, military asymmetry in the Caspian, have direct or indirect impact on energy security and puts a major burden on the state producer providing for the energy security. Consequently, although unlike oil diplomacy, the gas policy of Azerbaijani leadership is more commercialized, as some national security objectives have been achieved, Azerbaijan will continue to harmonize relations with the other states through balancing gas deals. The cautious approach to NATO in a difficult balancing act is most likely to be replaced by the speedier integration in Euro-Atlantic Council, as the rising tensions in the region and security deficit urge for consolidated and combined efforts to promote energy security. The inclusion in the energy security concept social and political impact of energy development in the country – producer wil help to reduce the ambivalence associated with the NATO role in energy security.