ADNOC signs agreement with Azerbaijan on terms of purchasing stake in Southern Gas Corridor
BAKU. Nov 5 (Interfax) - XRG, the international investment division of ADNOC (Abu Dhabi National Oil Company, UAE), plans to acquire a stake in CJSC Canub Qaz Dehlizi (CQD), the management company of the Southern Gas Corridor project, the Azerbaijani Economy Ministry said.
"XRG and the Azerbaijani Economy Ministry signed a non-binding agreement on the key terms for the acquisition of a stake in CJSC Canub Qaz Dehlizi on Monday. The document was signed as part of the ADIPEC exhibition," the ministry said.
The agreement was signed by Economy Minister and Supervisory Board Chairman of the State Oil Company of the Azerbaijani Republic (SOCAR) Mikail Jabbarov and XRG Chief Executive Officer Sultan Ahmed Al Jaber.
"This agreement could expand cooperation between SOCAR and XRG from gas production to delivering energy resources to markets seeking to diversify the energy supply in Europe. At the same time, it will contribute to the further expansion of relations based on the strategic partnership between Azerbaijan and the UAE," the ministry said.
The document was signed in accordance with the memorandum of understanding between the Azerbaijani Economy Ministry and XRG ASC on investments in the Southern Gas Corridor, which was signed during the meeting between Azerbaijani President Ilham Aliyev with UAE President Sheikh Mohamed bin Zayed Al Nahyan during the latter's visit to Azerbaijan on September 16, 2025.
XRG also confirmed that it will acquire a stake in CJSC Canub Qaz Dehlizi, expanding its presence in the Caspian Sea.
"Investment in CJSC Southern Gas Corridor, which delivers gas resources from the Azerbaijani sector of the Caspian Sea to the European market, further supports EU energy security and XRG's regional strategy," the company said.
XRG's assets in the Caspian Sea currently include a partnership with SOCAR for the development project of the Absheron gas condensate field with a 30% stake. XRG also owns a 38% stake in the offshore gas concession Block I in Turkmenistan. SOCAR in turn acquired a 3% stake in the SARB and Umm Lulu concession in Abu Dhabi from ADNOC in May 2024.
CQD was established in 2014 by the Azerbaijani state, represented by the Economy Ministry (51%) and SOCAR (49%). SOCAR currently owns 51% of the shares in the company while the Economy Ministry owns 49%.
Canub Qaz Dehlizi holds stakes in gas production assets and in a pipeline network with a total length of 3,500 kilometers. This infrastructure, with a transport capacity of up to 26 billion cubic meters per year, allows for the transportation of natural gas from the Caspian Basin to Southern Europe via Turkey. The company's assets include equity participation in the Shah Deniz gas condensate field, the South Caucasus Pipeline, the Trans-Anatolian Pipeline (TANAP) and the Trans-Adriatic Pipeline (TAP) as well as shares in Azerbaijan Gas Supply Company Limited.
Azerbaijan launched gas supplies via the Southern Gas Corridor on December 31, 2020.
In view of the growing demand for Azerbaijani gas, an expansion of the Southern Gas Corridor is planned by increasing the capacity of the TANAP and TAP pipelines to supply at least 20 bcm of gas to Europe by 2027.
Azerbaijan exported 25.2 bcm of gas in 2024, up 5.8% compared to the previous year, including 12.9 bcm to Europe or 51% of total exports.
