Photo Credit : WAM
XRG has completed the acquisition of an equity stake in Southern Gas Corridor CJSC (SGC) from Azerbaijan’s Ministry of Economy after fulfilling all conditions and securing the required regulatory approvals.
The transaction marks a major step in XRG’s strategy to build an integrated and resilient natural gas platform across the Caspian region. The company’s investments combine strategic export infrastructure with upstream assets in Azerbaijan’s Absheron gas and condensate field and Turkmenistan’s offshore Block I concession.
The Southern Gas Corridor is a 3,500-kilometre gas transportation network linking Azerbaijan’s Caspian resources with markets in Southern Europe through Georgia and Türkiye. Its assets include the Shah Deniz gas and condensate field, the South Caucasus Pipeline, the Trans Anatolian Pipeline, the Trans Adriatic Pipeline and shares in Azerbaijan Gas Supply Company.
The network can transport up to 26 billion cubic metres of natural gas annually, supporting energy supply diversification and strengthening Azerbaijan’s position as a reliable long-term energy partner.
Mohamed Al Aryani, President of International Gas at XRG, said the acquisition was a defining milestone in the company’s integrated Caspian strategy.
“By combining world-class gas resources in Azerbaijan and Turkmenistan with strategic export infrastructure, we are building a resilient platform that connects advantaged supply with growing regional and European demand,” he said.
The deal further strengthens the UAE-Azerbaijan energy partnership and expands XRG’s cooperation with SOCAR across the gas value chain.
In Azerbaijan, XRG holds a 30 percent interest in the Absheron gas and condensate field and is exploring future opportunities that can benefit from existing export infrastructure.
In Turkmenistan, XRG holds a 38 percent participating interest in the offshore Block I gas and condensate concession. The concession currently produces around 400 million cubic feet of natural gas per day and provides access to more than 7 trillion cubic feet of gas resources.
Together, the investments create a Caspian platform covering resource development, export infrastructure and access to established regional and European markets. The strategy is expected to improve route-to-market certainty, increase portfolio flexibility and support the efficient development of future gas supplies.
It also contributes to energy security, export growth and regional economic development while supporting long-term value creation through durable assets and strategic partnerships.
