XRG Acquires Stake in Southern Gas Corridor
- XRG signed a sales and purchase agreement with Azerbaijan's Ministry of Economy.
- The Southern Gas Corridor can deliver up to 26 billion cubic meters of natural gas annually.
- SGC's pipeline network spans 3,500km from the Caspian Sea to Southern Europe.
- The transaction supports XRG's strategy to expand its international gas portfolio.
Agreement Details
XRG has signed a sales and purchase agreement with the Ministry of Economy of the Republic of Azerbaijan to acquire an equity stake in Southern Gas Corridor CJSC (SGC). The agreement is subject to conditions precedent, including regulatory approvals.
Strategic Importance
The Southern Gas Corridor is a crucial export network supplying natural gas from the Azerbaijani sector of the Caspian Sea to markets in Azerbaijan, Georgia, Türkiye, and Europe. It includes the South Caucasus Pipeline, the Trans Anatolian Pipeline, and the Trans Adriatic Pipeline, enhancing Europe's energy supply reliability and diversification.
Infrastructure and Capacity
SGC, established in 2014, holds natural gas production assets and a 3,500km pipeline network. This network has the capacity to deliver up to 26 billion cubic meters of natural gas per year from the Caspian Sea through Georgia and Türkiye to Southern Europe.
XRG's Strategic Goals
The transaction aligns with XRG's strategy to build a resilient international gas portfolio supporting long-term demand growth. It expands XRG's presence in the Caspian region and builds on its collaboration with SOCAR, including participation in the Absheron gas and condensate field.
Source: XRG