XRG, the international energy investment platform launched by ADNOC in November 2024, has signed non-binding Heads of Terms to acquire a stake in Southern Gas Corridor CJSC (SGC) from Azerbaijan’s Ministry of Economy.

The agreement, signed on the sidelines of ADIPEC, aligns with a previous Memorandum of Understanding on investment in the Southern Gas Corridor, exchanged during a September meeting between Azerbaijani President Ilham Aliyev and UAE President Sheikh Mohammed bin Zayed Al Nahyan, News.Az reports, citing Azerbaijan's Ministry of Economy. 

The document was signed by Mikayil Jabbarov, Azerbaijan’s Minister of Economy and SOCAR Supervisory Board Chairman, and Sultan Al Jaber, Executive Chairman and CEO of XRG. 

The agreement potentially expands XRG’s collaboration with SOCAR from gas production to the reliable delivery of energy resources to European markets seeking to diversify their sources of supply. 

XRG’s holdings in the Caspian currently include its strategic partnership with SOCAR in the Absheron gas and condensate field, with a 30 percent stake. 

Southern Gas Corridor is a Closed Joint-Stock Company owned by the Ministry of Economy of the Republic of Azerbaijan and the State Oil Company of the Republic of Azerbaijan (SOCAR). 

The company’s assets include a participating interest in the Shah Deniz gas and condensate field, the South Caucasus Pipeline, the Trans Anatolian Pipeline, the Trans Adriatic Pipeline and shares in Azerbaijan Gas Supply Company Limited.