- XRG signed non-binding Heads of Terms to acquire a stake in Southern Gas Corridor CJSC from Azerbaijan's Ministry of Economy.
- SGC's assets include a 3,500km pipeline network with a capacity of 26 billion cubic meters per annum.
- XRG's current Caspian holdings include a 30% stake in the Absheron field and a 38% interest in Turkmenistan's Block I.
- SOCAR acquired a 3% interest in Abu Dhabi's SARB and Umm Lulu concession from ADNOC in May 2024.
Agreement Overview
XRG, an international energy investment platform launched by ADNOC, has signed non-binding Heads of Terms to acquire a stake in Southern Gas Corridor CJSC (SGC) from Azerbaijan's Ministry of Economy. This agreement was signed during ADIPEC, marking a significant step in the UAE-Azerbaijan energy partnership.
SGC's Assets
SGC, established in 2014, is an Azerbaijani energy holding company. Its assets include a 3,500km pipeline network from the Caspian through Türkiye to southern Europe, with a capacity to deliver up to 26 billion cubic meters annually. The company also holds interests in the Shah Deniz gas and condensate field, the South Caucasus Pipeline, the Trans Anatolian Pipeline, and the Trans Adriatic Pipeline.
XRG's Current Holdings
XRG's existing Caspian investments include a 30% stake in the Absheron gas and condensate field and a 38% interest in the offshore Block I gas concession in Turkmenistan. Additionally, SOCAR acquired a 3% interest in the SARB and Umm Lulu concession in Abu Dhabi from ADNOC in May 2024.
Strategic Implications
The agreement aims to enhance Azerbaijan's economic growth and reinforce its role as a reliable energy partner. It also expands XRG's collaboration with SOCAR, extending from gas production to the delivery of energy resources to European markets seeking supply diversification.
