Adnoc’s XRG expands in Caspian with Azerbaijan gas deal

• Buys Southern Gas Corridor stake
• Holding is non-controlling
• Builds on collaboration with Socar

XRG, the low-carbon energy and chemicals investment arm of Abu Dhabi National Oil Company (Adnoc), has acquired a stake in Southern Gas Corridor, an energy holding company, from the government of Azerbaijan.

The deal is subject to regulatory clearances, the UAE state-run Wam news agency reported.

Financial terms and the size of the holding were not disclosed. XRG has acquired a non-controlling stake, the Azeri state news agency said.

The acquisition follows the signing of non-binding agreements by Adnoc and Azerbaijan’s economy ministry in November 2025.

The deal supports XRG’s strategy to build an international gas portfolio and expands its presence across the Caspian region, Wam reported. It also builds on collaboration with the State Oil Company of the Republic of Azerbaijan (Socar), including participation in the Absheron gas and condensate field. 

The investment will provide XRG with exposure to an integrated upstream-midstream system central to the region’s long-term energy landscape, the report said.

Established in 2014, SGC is owned by the Azeri economy ministry and Socar. Its holdings include gas-producing assets and a 3,500km pipeline network from the Caspian through Turkey to Southern Europe with capacity to deliver up to 26 billion cubic metres per year. 

“The Southern Gas Corridor is a vital energy link that supports stability, economic growth and energy security,” said Sultan Al Jaber, executive chairman of XRG, adding the company is investing in high-quality, long-term infrastructure.

Further reading:

• XRG acquires controlling stake in Germany’s Covestro
• Adnoc’s XRG to develop Argentina LNG project
• Adnoc’s XRG seals a 10% stake in African gas projects

In May 2024, Socar acquired a 3 percent interest in the Satah Al Razboot and Umm Lulu offshore concession in Abu Dhabi from Adnoc, which was Socar’s first international upstream investment.

XRG’s holdings in the Caspian include a 30 percent stake in the Absheron gas and condensate field along with Socar. It also holds a 38 percent interest in an offshore concession in Turkmenistan. 

Last month XRG said it was buying an additional 7.6 percent stake in two liquefied natural gas trains at the Rio Grande LNG project in Texas, deepening its investment in one of the world’s largest export facilities.