ADNOC’s XRG to acquire equity stake in Southern Gas Corridor

XRG, the international investment arm of Abu Dhabi National Oil Co. (ADNOC), agreed earlier this month to acquire a non-controlling stake in Southern Gas Corridor CJSC (SGC). Neither a percentage nor a financial figure were disclosed.   

The agreement was signed months following a signed non-binding Heads of Terms to acquire the stake. That agreement was signed in November 2025 on the sidelines of ADIPEC, marking a step in a growing energy partnership between the United Arab Emirates (UAE) and Azerbaijan.

SGC, an Azerbaijani energy holding company, was established in 2014. Its holdings include natural gas production assets and a 3,500-km pipeline network from the Azerbaijani sector of the Caspian Sea to the markets in Azerbaijan, Georgia, Türkiye, and Europe through the South Caucasus Pipeline (SCP), the Trans Anatolian Pipeline (TANAP), and the Trans Adriatic Pipeline (TAP). The integrated network has current capacity to deliver up to 26 billion cu m/year of natural gas.

The deal, signed between XRG and the Ministry of Economy of the Republic of Azerbaijan, was made with participation from AIH and SOCAR. SOCAR carries out the operational activities for the projects on behalf of SGC.

“This agreement reinstates Azerbaijan’s role as a trusted energy partner to international markets and supports our long-term vision for sustainable economic development in collaboration with our strategic partners,” said Mikayil Jabbarov, the Minister of Economy of the Republic of Azerbaijan, and chairman of the supervisory board of SOCAR.

XRG aims to build a resilient international gas portfolio that supports long-term demand growth and builds on its existing collaboration with SOCAR, including participation in Absheron gas and condensate field.

The agreement is subject to certain conditions, including customary regulatory approvals.