• Home
• News

XRG, a wholly owned subsidiary of the UAE’s Abu Dhabi National Oil Company (ADNOC), announced on Tuesday, September 15, 2026, the successful completion of its acquisition of an equity stake in Azerbaijan’s Southern Gas Corridor CJSC. Following the fulfillment of all preconditions and regulatory approvals, the transaction marks a critical milestone in XRG's strategy to build a highly integrated and resilient natural gas platform in the Caspian Sea region, directly linking local resources to regional and European export markets.

Strategic Asset Integration: Upstream to Midstream

The acquisition solidifies XRG’s integrated energy model, combining upstream gas production with strategic midstream transit infrastructure:

Production Assets: XRG's regional portfolio already includes stakes in Azerbaijan's Absheron gas and condensate field, as well as the Block 1 offshore gas concession in Turkmenistan.

The Southern Gas Corridor (SGC): The SGC represents a massive 3,500-kilometer pipeline network connecting Azerbaijani gas through Georgia and Turkey directly to Southern Europe.

Infrastructure Portfolio: The SGC assets include stakes in the giant Shah Deniz gas field, the South Caucasus Pipeline, the Trans-Anatolian Pipeline (TANAP), the Trans Adriatic Pipeline (TAP), and the Azerbaijan Gas Supply Company.

Export Capacity and European Energy Security

With an annual transport capacity of approximately 26 billion cubic meters (bcm) of natural gas, the Southern Gas Corridor provides XRG with ready access to operational infrastructure that links wellheads directly to end-user markets.

Mohamed Al Ariyani, Head of the International Gas Platform at XRG, stated that integrating gas resources from Azerbaijan and Turkmenistan with strategic export channels allows the company to seamlessly connect competitive energy supplies with growing demand. The move is strategically timed as European gas markets continue to aggressively diversify their long-term supply sources and transit routes, placing a premium on secured, end-to-end energy corridors.