XRG Secures Stake in Key Gas Corridor Amid European Diversification Efforts

XRG, the Abu Dhabi-based investment arm of ADNOC, has finalized its acquisition of a stake in the Southern Gas Corridor. The company received all necessary regulatory approvals to purchase the stake from Azerbaijan's Ministry of Economy, according to The National. Financial details of the transaction remain undisclosed.

The Southern Gas Corridor spans approximately 3,500 km and connects gas fields and pipelines in Azerbaijan with those in Georgia, Türkiye, and Southern Europe. The corridor has a capacity of up to 26 billion cubic meters of natural gas per year.

XRG's assets include stakes in the Shah Deniz gas condensate field, the South Caucasus Pipeline, the Trans-Anatolian Pipeline, the Trans Adriatic Pipeline, and Azerbaijan Gas Supply Company. The company also holds shares 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.

XRG President Mohamed Al Aryani stated that this milestone marks an important step in the company's strategy to create an integrated and resilient gas position in the Caspian region. He noted that XRG combines Azerbaijan's and Turkmenistan's gas resources with strategic export infrastructure to supply regional and European markets.