XRG, the international energy investment platform owned by Abu Dhabi National Oil Company (ADNOC), has completed the acquisition of a 12.5% stake in Azerbaijan’s Southern Gas Corridor CJSC (SGC) from the country’s Ministry of Economy after securing the required regulatory approvals, according to a press release by XRG.
The transaction strengthens XRG’s position across the Caspian gas value chain by combining its upstream interests in Azerbaijan and Turkmenistan with strategic gas-export infrastructure connecting Caspian resources to Türkiye and European markets.
The deal was initially agreed upon in February 2026, when XRG signed a sale and purchase agreement with Azerbaijan’s Ministry of Economy. XRG had previously signed non-binding terms for the transaction in November 2025.
The network extends about 3,500 kilometers from Azerbaijan through Georgia and Türkiye to Southern Europe and has the capacity to transport up to 26 billion cubic meters (bcm) of natural gas annually.
On this occasion, Mohamed Al Aryani, President of International Gas at XRG, commented that the completion of this transaction marks a significant milestone that accelerates XRG’s progress in executing its integrated strategy in the Caspian Sea region. By combining world-class gas resources in Azerbaijan and Turkmenistan with strategic export infrastructure. XRG is establishing a resilient platform connecting competitive energy supplies with growing demand in regional and European markets. This step underscores our commitment to building long-term partnerships and executing disciplined investments that help ensure energy security, support economic growth, and create sustainable value across the region.
XRG said the investment also strengthens the strategic energy partnership between the UAE and Azerbaijan and expands its cooperation with State Oil Company of the Republic of Azerbaijan (SOCAR) across the gas value chain.
XRG already holds a 30% stake in the Absheron gas-condensate field in Azerbaijan. The company is also a partner in Turkmenistan’s offshore Block 1, where it holds a 38% participating interest.
Block 1 currently has a production capacity of around 400 million cubic feet per day (mmcf/d) and offers access to more than 7 trillion cubic feet (tcf) of gas resources, according to the company.
