UAE’s XRG secures stake in Azerbaijan’s Southern Gas Corridor

UAE energy company XRG has completed the acquisition of an equity stake in Azerbaijan’s Southern Gas Corridor CJSC (SGC) from the country’s Ministry of Economy, it said on September 15.

The transaction follows the fulfilment of all conditions precedent and receipt of customary regulatory approvals, XRG said, describing the completion as a major step in its strategy to build an integrated gas portfolio across the Caspian region, WAM reports.

The Southern Gas Corridor is a 3,500-km network transporting natural gas from Azerbaijan’s Caspian sector through Georgia and Türkiye to Southern Europe. Its assets include interests in the Shah Deniz gas and condensate field, the South Caucasus Pipeline, the Trans Anatolian Pipeline and the Trans Adriatic Pipeline, as well as shares in Azerbaijan Gas Supply Company.

The network has capacity to transport up to 26 billion cubic metres of natural gas a year, supporting the diversification and reliability of energy supplies and Azerbaijan’s role as an energy supplier to regional and European markets.

“This completion is a defining step in the development of XRG’s integrated Caspian strategy,” Mohamed Al Aryani, President of International Gas at XRG, said.

XRG said the transaction deepens the energy partnership between the United Arab Emirates and Azerbaijan and expands its cooperation with Azerbaijan’s state energy company SOCAR across the gas value chain.

XRG holds a 30% stake in Azerbaijan’s Absheron gas and condensate field and is pursuing further opportunities that could use existing export infrastructure.

In Turkmenistan, XRG holds a 38% participating interest in offshore Block I, a gas and condensate concession that produces about 400 million cubic feet of natural gas per day and provides access to more than 7 trillion cubic feet of gas resources.

XRG said its investments in Azerbaijan and Turkmenistan, combined with its participation in strategic export infrastructure, create a Caspian platform spanning resource development, infrastructure and access to established markets.

In November 2025, Azerbaijan’s Ministry of Economy and XRG signed a non-binding heads of terms agreement concerning XRG’s acquisition of a stake in Southern Gas Corridor CJSC. The document was signed by Economy Minister Mikayil Jabbarov and XRG CEO Sultan Al Jaber.

By Aghakazim Guliyev