Abu Dhabi-based energy company XRG has finalized the acquisition of an equity stake in Southern Gas Corridor CJSC from Azerbaijan’s Ministry of Economy, enhancing its portfolio of gas assets in the Caspian region. The transaction provides XRG with access to a 3,500-kilometre gas pipeline network that transports natural gas from Azerbaijan’s Caspian Sea sector through Georgia and Turkey to markets in Southern Europe.
The Southern Gas Corridor infrastructure has the capacity to deliver up to 26 billion cubic metres of natural gas annually. Its assets include stakes in the Shah Deniz gas and condensate field, the South Caucasus Pipeline, the Trans Anatolian Pipeline, and the Trans Adriatic Pipeline, along with shares in the Azerbaijan Gas Supply Company. The acquisition was completed following the fulfillment of all conditions precedent and receipt of customary regulatory approvals.
This investment builds on XRG’s existing interests in the region, including a 30 percent stake in Azerbaijan’s Absheron gas and condensate field and a 38 percent participating interest in Turkmenistan’s offshore Block 1 gas and condensate concession. Block 1 currently produces approximately 400 million cubic feet of natural gas per day and holds potential reserves exceeding 7 trillion cubic feet.
By gaining exposure to both gas production and transportation infrastructure, XRG positions itself across the full value chain. The Southern Gas Corridor offers established export routes to Turkey and Southern Europe, providing a direct and reliable path for Caspian gas to reach market. The company expects the acquisition to enhance route-to-market certainty, increase operational flexibility, and open opportunities to supply future gas volumes via the existing pipeline network.
The transaction also expands XRG’s partnership with SOCAR, Azerbaijan’s state oil company, further strengthening the energy ties between the United Arab Emirates and Azerbaijan. This development is aligned with XRG’s broader strategy to deepen its foothold in key Caspian gas producing countries and infrastructure assets.