XRG Secures Stake in Southern Gas Corridor Amid Regional Energy Push

XRG, the global investment arm of ADNOC, has completed its purchase of a shareholding in the Southern Gas Corridor from Azerbaijan's Ministry of Economy. This deal marks a significant milestone in XRG's plan to establish a robust gas footprint throughout the Caspian area.

The Southern Gas Corridor spans 3,500 kilometers and carries natural gas from Azerbaijan's Caspian Sea zone via Georgia and Turkiye into Southern Europe. The system can move up to 26 billion cubic meters of gas each year, making it a crucial piece of infrastructure for regional energy security.

XRG stated that its involvement in the Southern Gas Corridor aligns with its upstream assets in Azerbaijan's Absheron gas and condensate field and Turkmenistan's offshore Block I concession. Mohamed Al Aryani, President of International Gas at XRG, noted that merging these resources with strategic export infrastructure would create a durable platform linking low-cost supply to rising regional and European demand.

The purchase reinforces XRG's collaboration with Azerbaijan and SOCAR along the gas value chain, while broadening its route-to-market possibilities. XRG expects the merged portfolio to boost supply adaptability, aid export expansion, and regional economic progress, allowing for more efficient future gas deliveries via existing infrastructure.