XRG has signed a sales and purchase agreement with the Ministry of Economy of Azerbaijan to acquire an equity stake in Southern Gas Corridor CJSC, subject to customary regulatory and antitrust approvals. Moreover, the agreement was signed in the presence of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates, and President Ilham Aliyev, underscoring the transaction’s strategic importance.
Strategic infrastructure and energy security
The investment strengthens cooperation between the UAE and Azerbaijan and, in turn, supports shared objectives in regional energy security and economic integration. Additionally, the Southern Gas Corridor is a critical export system that transports natural gas from the Caspian Sea to Azerbaijan, Georgia, Türkiye, and Europe via SCP, TANAP, and TAP. As a result, the network enhances supply reliability and diversification for European markets while reinforcing Azerbaijan’s role as a long-term energy partner.
Portfolio expansion and regional exposure
SGC, established in 2014, holds natural gas production assets and a 3,500km pipeline system with a capacity of up to 26 billion cubic meters per year. Furthermore, the transaction aligns with XRG’s strategy to build a resilient international gas portfolio and expand its footprint in the Caspian region. It also builds on existing collaboration with SOCAR, including participation in the Absheron gas and condensate field.
“Today’s signing reflects the strong and growing strategic partnership between the UAE and Azerbaijan…,” said Dr. Sultan Al Jaber. Meanwhile, Mikayil Jabbarov stated: “We welcome XRG’s investment in the Southern Gas Corridor and look forward to further deepening our cooperation.”
