ADNOC’s XRG invests in Azerbaijan Gas Field, aiming to build “lasting value” for UAE

ABU DHABI – XRG, the international investment arm of ADNOC, says its stake in the Absheron gas field in Azerbaijan is part of a strategy to turn UAE energy expertise into overseas businesses that benefit the country.

XRG and its partners announced on September 26 that they will go ahead with the next phase of Absheron, an offshore field about 100 kilometres south-east of Baku. The expansion is expected to unlock up to five trillion cubic feet of recoverable gas and start production in 2029, lifting daily output from 150 million to 600 million cubic feet.

“We want to turn UAE expertise into businesses that create lasting value for the country, while building skills and partnerships for the future,” said Ali Al Hammadi, Asset Management Manager for International Gas at XRG.

They also aim to build stronger links with countries and companies beyond the Emirates.

XRG says the approach involves more than funding. It works with partners on how projects are developed, what they cost and how they serve customers, drawing on ADNOC’s experience. Emirati professionals take part in international projects and bring back what they learn from global partners, the company says.

Al Hammadi said the investment is not a substitute for activity at home. “Investing abroad complements the work continuing at home,” he said.

XRG holds a 30 per cent interest in Absheron, alongside Azerbaijan’s state energy company SOCAR and France’s TotalEnergies.

The stake was agreed in August 2023 and later moved to XRG, which ADNOC established in November 2024, and invests abroad through three businesses: International Gas, Global Chemicals and Energy Solutions.

The partners secured a long-term gas sales agreement with Türkiye’s BOTAŞ before committing to the expansion. The new gas is intended for customers in Azerbaijan and Türkiye through pipelines connected to wider European markets.

The XRG also holds a stake in the Southern Gas Corridor, the 3,500-kilometre pipeline network that carries Azerbaijani gas through Georgia and Türkiye towards Europe.

The first phase of Absheron began producing in 2023, supplying customers in Azerbaijan.