XRG, the international energy investment platform of Abu Dhabi National Oil Company, announced the completion of its acquisition of a 12.5 percent equity stake in Southern Gas Corridor CJSC from Azerbaijan’s Ministry of Economy after securing all necessary regulatory approvals. The transaction, initially agreed in February following non-binding terms signed in November 2025, combines the investor’s existing upstream interests with critical gas export infrastructure spanning the Caspian to Europe. XRG stated in a statement that the move forms a key element of its broader international gas portfolio development.
Southern Gas Corridor CJSC, established in 2014, oversees natural gas production assets along with a 3,500-kilometer pipeline network that includes the South Caucasus Pipeline, the Trans Anatolian Pipeline and the Trans Adriatic Pipeline. The integrated system holds capacity to deliver up to 26 billion cubic meters of natural gas per year to markets in Azerbaijan, Georgia, Türkiye and southern Europe. SOCAR carries out operational activities for the projects on behalf of the holding company, according to details released by XRG.
The acquisition builds directly on XRG’s existing 30 percent interest in Azerbaijan’s Absheron gas and condensate field, where it has collaborated with SOCAR for several years. XRG also maintains a 38 percent stake in Turkmenistan’s Offshore Block I gas concession, creating a connected platform across the Caspian basin. Company statements noted that the Southern Gas Corridor stake enhances integration across the full gas value chain from production through to export infrastructure.
XRG completes acquisition of equity stake in Southern Gas Corridor, advancing integrated Caspian strategy, as the investment aligns with growing European demand for diversified natural gas supplies independent of Russian sources. The deal further strengthens the strategic energy partnership between the UAE and Azerbaijan, which has expanded through multiple joint initiatives in recent years. Presidents of both nations witnessed the initial sales and purchase agreement earlier in 2026.
XRG has pursued aggressive expansion of its global gas and LNG business over the past two years, including an 11.7 percent stake in the Rio Grande LNG project in Texas and a 32 percent position in Argentine Vaca Muerta shale gas blocks alongside Eni and YPF. These investments sit alongside participation in Mozambique’s Rovuma LNG and Egypt’s Arcius Energy, according to the company’s published portfolio updates. Industry projections indicate LNG demand could rise by 60 percent by 2050, driven by industrial growth, data centers and broader economic needs for lower-carbon fuels.
The transaction with Azerbaijan’s Ministry of Economy, executed with participation from AIH and SOCAR, remains focused on long-term demand growth across key markets. XRG emphasized that the Caspian assets support both regional energy security and its own objective of building a resilient international platform. Further details on financial terms were not disclosed in the announcement.
