XRG announced today that it has entered into a sales and purchase agreement with the Ministry of Economy of the Republic of Azerbaijan to purchase an equity interest in Southern Gas Corridor CJSC (SGC), with conditional precedent, including the customary regulatory and antitrust sanctions.
The signing of the agreement was witnessed 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.
The investment by XRG in SGC is a major step toward the rising cooperation between the UAE and Azerbaijan, enhancing a shared set of goals to further expand the energy security of the region, increase the intensity of economic relations, and create some strategic energy infrastructure internationally.
The Southern Gas Corridor value chain is a paramount exportation system providing enormous natural gas reserves of the Azerbaijani segment of the Caspian Sea to the markets of Azerbaijan, Georgia, Turek and Europe using the South Caucasus Pipeline (SCP), the Trans Anatolian Pipeline (TANAP), and the Trans Adriatic Pipeline (TAP).
Such a network of integration contributes to the reliability and diversification of energy supply in Europe and strengthens the position of Azerbaijan as a long-lasting and credible 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, stated, “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 is an Azerbaijani energy holding company that was founded in 2014. It has holdings in natural gas production equipment and a 3,500km pipeline system of the Azerbaijani part of the Caspian Sea, through Georgia and Türkiye to Southern Europe, with the present capacity to supply up to 26 billion cubic meters of natural gas each year.
The deal is in line with the strategy of XRG to establish a strong international gas portfolio that can be used to accommodate the growth of demand over the long term.
It increases the presence of the company in the Caspian area and the existing partnership with SOCAR, such as the involvement in the region of the Absheron gas and condensate field.
The acquisition gives XRG a platform exposure to a big integrated upstream-midstream platform, which is a core component of the long-term energy picture in the region.
