XRG, ADNOC's international investment company, has completed its acquisition of an equity stake in Southern Gas Corridor (SGC) from Azerbaijan’s Ministry of Economy, following the satisfaction of all conditions and receipt of customary regulatory approvals.

The transaction marks a major step in XRG’s strategy to build an integrated and resilient gas position across the Caspian region.

The Southern Gas Corridor is a 3,500-kilometre network transporting natural gas from Azerbaijan’s Caspian Sea sector through Georgia and Türkiye to Southern Europe.

 Its assets include interests in the Shah Deniz gas and condensate field, South Caucasus Pipeline, Trans Anatolian Pipeline and 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 gas annually.

XRG said its participation in SGC complements its upstream investments in Azerbaijan’s Absheron gas and condensate field and Turkmenistan’s offshore Block I concession, creating an integrated platform linking Caspian resources with regional and European markets.

Mohamed Al Aryani, President, International Gas at XRG, said: “This completion is a defining step in the development of XRG’s integrated Caspian strategy. By combining world-class gas resources in Azerbaijan and Turkmenistan with strategic export infrastructure, we are building a resilient platform that connects advantaged supply with growing regional and European demand. It also reflects our commitment to long-term partnerships and disciplined investment that supports energy security, economic growth and enduring value across the region.”

In Azerbaijan, XRG holds a 30 per cent interest in the Absheron field and is pursuing opportunities that can leverage existing export infrastructure.

 In Turkmenistan, it holds a 38 per cent participating interest in offshore Block I, which produces around 400 million cubic feet of gas per day and provides access to more than 7 trillion cubic feet of resources.

The acquisition strengthens XRG’s partnership with Azerbaijan and SOCAR across the gas value chain, while expanding its route-to-market options.

XRG said the combined portfolio will enhance supply flexibility, support export growth and regional economic development, and enable future gas supplies to reach established markets more efficiently through existing infrastructure. -OGN/TradeArabia News Service