XRG to Acquire Stake in Southern Gas Corridor, Strengthening UAE-Azerbaijan Energy Ties
XRG signed an agreement with Azerbaijan’s Ministry of Economy to acquire a stake in Southern Gas Corridor CJSC, expanding its Caspian energy portfolio and reinforcing UAE-Azerbaijan cooperation in gas infrastructure.
(P&GJ) — XRG, the international energy investment platform launched by ADNOC in 2024, has signed non-binding Heads of Terms with the Azerbaijan Ministry of Economy to acquire a stake in Southern Gas Corridor CJSC (SGC), further expanding its footprint in the Caspian region and supporting Europe’s energy diversification goals.
The agreement was signed on the sidelines of the ADIPEC conference in Abu Dhabi by H.E. Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Executive Chairman and CEO of XRG, and H.E. Mikayil Jabbarov, Minister of Economy of the Republic of Azerbaijan and Chairman of SOCAR’s Supervisory Board. Representatives from the Abu Dhabi Investment Holding (AIH) and the State Oil Company of the Republic of Azerbaijan (SOCAR) also participated in the signing.
Established in 2014, SGC holds natural gas production assets and operates a 3,500-kilometer pipeline network stretching from the Caspian Sea through Türkiye to southern Europe, with the capacity to deliver up to 26 billion cubic meters of gas per year. The network includes stakes in the Shah Deniz gas and condensate field, the South Caucasus Pipeline, the Trans Anatolian Pipeline (TANAP), and the Trans Adriatic Pipeline (TAP)—key infrastructure delivering Caspian gas to European markets.
According to XRG, the investment aligns with its strategy to strengthen partnerships across the Caspian region and expand its role in supporting global energy security. “The agreement potentially expands XRG’s collaboration with SOCAR from gas production to the reliable delivery of energy resources to European markets seeking to diversify their sources of supply,” the company said.
XRG currently holds a 30% stake in Azerbaijan’s Absheron gas and condensate field and a 38% interest in the offshore Block I gas concession in Turkmenistan. SOCAR also holds a 3% interest in the SARB and Umm Lulu concession in Abu Dhabi, acquired from ADNOC in 2024.
The transaction underscores growing economic cooperation between the UAE and Azerbaijan in strategic energy projects and marks another step toward deepening regional investment ties.