XRG completes Southern Gas Corridor deal, expanding Caspian gas route to Europe

Dubai: XRG has completed its acquisition of an equity stake in Southern Gas Corridor CJSC from Azerbaijan’s Ministry of Economy, adding a major export network to its growing portfolio of gas assets across the Caspian region.

The transaction gives the Abu Dhabi-based company exposure to a 3,500-kilometre gas network that transports natural gas from the Azerbaijani sector of the Caspian Sea through Georgia and Türkiye to Southern Europe.

Southern Gas Corridor has capacity to deliver up to 26 billion cubic metres of natural gas annually, giving XRG an infrastructure position alongside its existing upstream investments in Azerbaijan and Turkmenistan.

The deal was completed after all conditions precedent were met and customary regulatory approvals were received.

Connecting production with export infrastructure

Southern Gas Corridor’s assets include interests in the Shah Deniz gas and condensate field, the South Caucasus Pipeline, the Trans Anatolian Pipeline and the Trans Adriatic Pipeline, along with shares in Azerbaijan Gas Supply Company.

The acquisition complements XRG’s 30% interest in Azerbaijan’s Absheron gas and condensate field and its 38% participating interest in Turkmenistan’s offshore Block I gas and condensate concession.

Block I currently produces approximately 400 million cubic feet of natural gas per day and provides access to more than 7 trillion cubic feet of natural gas resources.

The combination gives XRG exposure across gas production, infrastructure and established customer markets, while providing existing routes for future supplies from its Caspian investments.

Greater access to regional and European markets

The Southern Gas Corridor connects Caspian production with customers across Türkiye and Southern Europe, providing XRG with established infrastructure to move gas from the region to market.

XRG said the investment will improve route-to-market certainty, increase portfolio flexibility and create opportunities to bring future gas supplies to customers through infrastructure already in place.

The transaction also expands XRG’s relationship with Azerbaijan’s SOCAR across the gas value chain and deepens the energy partnership between the UAE and Azerbaijan.