ABU DHABI (WAM)
XRG announced on Monday that it 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), subject to satisfaction of conditions precedent, including customary regulatory and antitrust approvals.
The agreement was signed in the presence of President His Highness Sheikh Mohamed bin Zayed Al Nahyan and Ilham Aliyev, President of the Republic of Azerbaijan, between Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Executive Chair of XRG, and Mikayil Jabbarov, the Minister of Economy of the Republic of Azerbaijan and Chairman of the Supervisory Board of SOCAR.
XRG’s investment in SGC represents a significant step forward in the growing partnership between the UAE and Azerbaijan, advancing shared objectives to strengthen regional energy security, deepen economic cooperation, and develop strategic international energy infrastructure.
The Southern Gas Corridor value chain is a critical export network supplying vast natural gas resources from the Azerbaijani sector of the Caspian Sea to the markets of Azerbaijan, Georgia, Türkiye, and Europe through the South Caucasus Pipeline (SCP), the Trans Anatolian Pipeline (TANAP), and the Trans Adriatic Pipeline (TAP).
This integrated network enhances the reliability and diversification of Europe’s energy supplies while reinforcing Azerbaijan’s role as a long-term and trusted energy partner.
Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Executive Chairman of XRG, said, "Today’s signing reflects the strong and growing strategic partnership between the UAE and Azerbaijan and it reinforces XRG’s mission to transform energy and materials into growth engines for enduring demand. The Southern Gas Corridor is a vital energy link that supports stability, economic growth and energy security and it strengthens our commitment to investing in high-quality, long-term infrastructure that delivers lasting value and global progress.”
Mikayil Jabbarov, the Minister of Economy of the Republic of Azerbaijan and Chairman of the Supervisory Board of SOCAR added, "We welcome XRG’s investment in the Southern Gas Corridor and look forward to further deepening our cooperation. This agreement reinstates Azerbaijan’s role as a trusted energy partner to international markets and supports our long-term vision for sustainable economic development in collaboration with our strategic partners. Together with our partners, we are building the foundations for enhanced regional connectivity and future growth."
SGC, an Azerbaijani energy holding company, was established in 2014. Its holdings include natural gas production assets and a 3,500km pipeline network from the Azerbaijani sector of the Caspian Sea, through Georgia and Türkiye to Southern Europe, with the current capacity to deliver up to 26 billion cubic meters of natural gas per annum.
The transaction aligns with XRG’s strategy to build a resilient international gas portfolio that supports long-term demand growth. It expands the company’s presence across the Caspian region and builds on its existing collaboration with SOCAR, including participation in the Absheron gas and condensate field. The acquisition provides XRG with exposure to a major integrated upstream-midstream system that is central to the region’s long-term energy landscape.