XRG, the low-carbon energy and chemicals investment arm of Abu Dhabi National Oil Company (ADNOC) has acquired a non-controlling stake in Southern Gas Corridor (SGC) from the government of Azerbaijan.
The transaction is subject to regulatory approvals, according to the UAE state news agency Wam. Financial terms and the size of the stake were not disclosed.
The acquisition follows non-binding agreements signed between ADNOC and Azerbaijan’s Ministry of Economy in November 2025 and aligns with XRG’s strategy to expand its international gas portfolio and Caspian exposure. It also deepens cooperation with the State Oil Company of the Republic of Azerbaijan (Socar), including in the Absheron gas and condensate field.
The investment provides XRG exposure to an integrated upstream-midstream gas system that underpins the region’s long-term energy supply, providing sustained oil rents for XRG.
Established in 2014, SGC is owned by Azerbaijan’s Ministry of Economy and Socar. Its assets include gas-producing fields and a 3,500-kilometre pipeline network linking the Caspian to southern Europe, with capacity of up to 26 billion cubic metres per year.
XRG’s Caspian portfolio includes a 30% stake in the Absheron field and a 38% interest in an offshore concession in Turkmenistan. Last month, the company said it would acquire an additional 7.6% stake in two LNG trains at the Rio Grande LNG project in Texas.
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