UAE’s XRG completes acquisition of stake in Southern Gas Corridor
XRG, an Abu Dhabi, UAE-based international investment arm of ADNOC, has completed the acquisition of a stake in the Southern Gas Corridor. The company received all regulatory approvals to purchase the stake from Azerbaijan’s Ministry of Economy, The National reports. Financial details of the transaction have not been disclosed; it was first announced in November.
Route to Southern Europe
The Southern Gas Corridor connects gas fields and pipelines with a total length of about 3,500 km. It runs from the Azerbaijani sector of the Caspian Sea through Georgia and Türkiye to Southern Europe. The corridor has a capacity of up to 26 billion cubic metres of natural gas per year.
XRG’s assets include stakes in Azerbaijan’s Shah Deniz gas condensate field, the South Caucasus Pipeline from the Caspian Sea to Türkiye, the Trans-Anatolian Pipeline between the Turkish-Georgian and Turkish-Greek borders, and the Trans Adriatic Pipeline. The company also owns shares in Azerbaijan Gas Supply Company.
More current news is available on the UA.News Telegram channel Telegram.
Assets in the Caspian region
XRG called the completion of the transaction an important milestone in its strategy to build an integrated and resilient gas position in the Caspian region. Mohamed Al Aryani, President of XRG International Gas, said the company combines Azerbaijan’s and Turkmenistan’s gas resources with strategic export infrastructure to supply regional and European markets.
XRG holds a 30% stake in the Absheron gas condensate field in Azerbaijan and a 38% stake in the offshore Block I gas condensate area off the coast of Turkmenistan. The company was founded in 2024 as an international investment company in low-carbon energy and chemicals; its enterprise value exceeds $80 billion.
The Southern Gas Corridor is important for gas supplies to Southern Europe. As the publication notes, European countries are seeking alternative sources of supply as they reduce their dependence on Russian gas amid the war in Ukraine.
