Azerbaijan’s state-owned oil and gas company SOCAR has finalized a $1.65 billion deal with Comstock to acquire key assets in the Haynesville shale region and a stake in a gas infrastructure subsidiary. The acquisition includes a 20% stake in Comstock’s legacy Haynesville assets, a 15% stake in Western Haynesville, and 15% of Comstock’s majority interest in Pinnacle Gas Services.
The deal comes as global demand for natural gas is expected to grow, driven in part by the expansion of data centers and artificial intelligence infrastructure by Big Tech companies. However, the recent Democratic victory in the midterm elections has introduced uncertainty, as some candidates campaigned on limiting data center proliferation due to concerns over energy consumption and rising electricity costs.
Brendan Steinhauser, a former Republican strategist and CEO of Alliance for Secure AI, noted that data centers faced significant opposition in key states, with moratoria gaining popularity. Despite this, the outlook for natural gas demand remains strong, as gas is seen as a cleaner alternative to coal for baseload power supply.
The upcoming COP31 conference is expected to refocus attention on emission cuts, further supporting the role of natural gas in the energy transition.