XRG completes purchase of stake in Southern Gas Corridor, advancing Caspian strategy
Abu Dhabi-headquartered XRG has finalised the acquisition of an equity interest in Southern Gas Corridor CJSC from Azerbaijan’s Ministry of Economy, linking its upstream holdings to strategic export infrastructure.
XRG secures stake in strategic Caspian export network
XRG has completed the acquisition of an equity interest in Southern Gas Corridor CJSC from the Ministry of Economy of the Republic of Azerbaijan, following the satisfaction of all conditions precedent and receipt of customary regulatory approvals. The deal strengthens the company’s position across the Caspian basin by combining export infrastructure participation with upstream production assets.
The Southern Gas Corridor is an integrated, roughly 3,500-kilometre network that moves natural gas from the Azerbaijani sector of the Caspian Sea through Georgia and Türkiye to southern Europe. Its portfolio comprises interests in the Shah Deniz field, the South Caucasus Pipeline, the Trans-Anatolian Pipeline (TANAP) and the Trans-Adriatic Pipeline (TAP), together with holdings in Azerbaijan Gas Supply Company. The system can deliver up to 26 billion cubic metres of gas per year, underpinning supply diversification for regional and European customers.
For XRG, the completed acquisition complements its upstream positions in the region. The company holds a 30 per cent interest in the Absheron gas and condensate field in Azerbaijan and a 38 per cent participating interest in Turkmenistan’s offshore Block I concession. Block I currently produces about 400 million cubic feet of gas per day and provides access to more than 7 trillion cubic feet of resources.
Mohamed Al Aryani, President, International Gas at XRG, said the closing marks a defining step for the firm’s integrated Caspian strategy. He emphasised that aligning world-class Caspian resources with strategic export routes creates a resilient platform that connects advantaged supply with growing regional and European demand, while reflecting XRG’s focus on long-term partnerships and disciplined investment to support energy security and economic growth.
The transaction also deepens the UAE–Azerbaijan energy relationship and expands cooperation with Azerbaijan’s state oil company SOCAR across the gas value chain. By combining resource development and strategic infrastructure exposure, XRG aims to improve route-to-market certainty, diversify its portfolio and enhance flexibility, with the ability to move future volumes more efficiently through established corridors.
Officials noted that the integrated approach should bolster regional export capacity, support longer‑term market reliability and contribute to economic development by leveraging long‑life assets and stable partnerships. The move positions XRG to supply existing markets and to respond to evolving demand dynamics in both neighbouring regions and Europe.
Source: WAM