The deal will be completed subject to a number of pre-conditions, including standard regulatory and antitrust approvals, Emirates7 wrote.
The agreement was signed in the presence of Sheikh Mohammed bin Zayed Al Nahyan, President of the United Arab Emirates, and Ilham Aliyev, President of the Republic of Azerbaijan. The agreement was signed by Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Executive Chairman of XRG, on the one hand, and Mikail Jabbarov, Minister of Economy of Azerbaijan and Chairman of the Supervisory Board of SOCAR, on the other.
Subject of the transaction and prospects
As the publication notes, the Southern Gas Corridor is a key export system supplying significant volumes of natural gas from the Azerbaijani sector of the Caspian Sea to markets in Azerbaijan, Georgia, Turkey and Europe via the South Caucasus Pipeline (SCP), Trans-Anatolian Natural Gas Pipeline (TANAP) and Trans Adriatic Pipeline (TAP).
This integrated network increases the reliability and diversification of Europe’s energy supply, while strengthening Azerbaijan’s role as a long-term and reliable energy partner.
XRG is an international energy investment company established and wholly owned by Abu Dhabi National Oil Company (ADNOC). It was launched in November 2024 as a standalone investment platform with an initial asset value of over $80 billion.
The company is focused on global investments in gas, chemicals and low-carbon energy solutions. XRG aims to double the value of its assets over the next decade.
Southern Gas Corridor CJSC (SGC), is an Azerbaijani energy holding company founded in 2014. Its portfolio includes natural gas production assets and a pipeline network of about 3,500 km running from the Azerbaijani sector of the Caspian Sea through Georgia and Turkey to Southern Europe, with a current capacity of up to 26 billion cubic meters of natural gas per year.
The deal expands XRG’s presence in the Caspian region and builds on its existing cooperation with SOCAR, including its participation in the Absheron gas condensate field.
The acquisition gives XRG access to a large integrated upstream-midstream system that plays a key role in the region’s long-term energy architecture.
