Adnoc's XRG to acquire stake in Azerbaijan’s Southern Gas Corridor

Dubai: XRG, the international energy investment platform launched by ADNOC, has signed non-binding Heads of Terms to acquire a stake in Southern Gas Corridor CJSC (SGC) from Azerbaijan’s Ministry of Economy, expanding its footprint in the Caspian region and reinforcing energy cooperation between the UAE and Azerbaijan.

The agreement, signed during ADIPEC by UAE Minister of Industry and Advanced Technology and XRG Executive Chairman Dr. Sultan Al Jaber and Azerbaijan’s Minister of Economy Mikayil Jabbarov, marks a significant step in growing strategic energy collaboration between the two nations.

SGC, established in 2014, plays a central role in transporting natural gas from Azerbaijan’s Caspian sector to Europe through a 3,500-kilometer pipeline network running via Türkiye. The system currently delivers up to 26 billion cubic meters of gas annually, supporting the EU’s energy diversification and security efforts.

XRG said the planned investment aligns with its regional growth strategy and complements its existing Caspian partnerships. The company already holds a 30% stake in Azerbaijan’s Absheron gas and condensate field and a 38% interest in Turkmenistan’s offshore Block I gas concession.

The potential deal also deepens the UAE’s energy links with Azerbaijan. Earlier this year, Azerbaijan’s state oil company SOCAR acquired a 3% stake in ADNOC’s SARB and Umm Lulu offshore concession, further strengthening bilateral investment in the sector.

Southern Gas Corridor CJSC is jointly owned by Azerbaijan’s Ministry of Economy and SOCAR. Its assets include stakes in the Shah Deniz gas field, the South Caucasus, Trans Anatolian, and Trans Adriatic pipelines, and Azerbaijan Gas Supply Company Limited — key infrastructure in delivering Caspian gas to European markets.

Founded in 2024 and headquartered in Abu Dhabi, XRG focuses on natural gas, chemicals, and scalable energy solutions to meet growing industrial and AI-related energy demand worldwide. The company is wholly owned by ADNOC.