ADNOC subsidiary inks agreement with Azerbaijan to buy share in Southern Gas Corridor
BAKU. Feb 3 (Interfax) - XRG, the international investment branch of the UAE's Abu Dhabi National Oil Company (ADNOC), has signed an agreement with Azerbaijan to purchase a share in CJSC Canub Qaz Dehlizi (CQD), the managing company of the Southern Gas Corridor project, the press service of Azerbaijani President Ilham Aliyev reported.
According to the press release, Aliyev met with UAE president Sheikh Mohamed bin Zayed Al Nahyan in the UAE on Monday. "In the presence of the two presidents, a document was signed concerning the sale of a portion of the non-controlling stake held by Azerbaijan's Ministry of Economy in Southern Gas Corridor CJSC to XRG, the international investment arm of the Abu Dhabi National Oil Company (ADNOC)," the press release reads.
It did not provide any further details.
XRG and Azerbaijan's Ministry of Economy were reported to have signed a non-binding agreement outlining the key terms of the sale on November 5, 2025.
XRG said then that it would acquire a stake in CJSC CQD and thus expand its presence in the Caspian Sea.
XRG's current assets in the Caspian Sea include a 30% stake in a joint project with the State Oil Company of the Azerbaijani Republic (SOCAR) to develop the Absheron gas condensate field. It also holds a 38% stake in Turkmenistan's Block 1 offshore oil field. SOCAR, in turn, purchased a 3% stake in the SARB and Umm Lulu fields from ADNOC in 2024.
CQD is a state-owned company founded in 2014 by the Ministry of Economy, with a 51% share, and SOCAR with a 49% share.
Canub Qaz Dehlizi holds shares in gas production assets and a pipeline network stretching 3,500 kilometers overall and transporting natural gas from the Caspian Basin to Southern Europe via Turkey. The company's assets include stakes in the Shah Deniz gas condensate field, the South Caucasus Pipeline, the Trans-Anatolian Natural Gas Pipeline (TANAP) and the Trans Adriatic Pipeline (TAP) as well as shares in Azerbaijan Gas Supply Company Limited.
Azerbaijan started to deliver gas via the Southern Gas Corridor on December 31, 2020. Taking into account increased demand for Azerbaijani gas, the country is now planning to expand the corridor, increasing the TANAP and TAP capacities in order to begin supplying Europe with 16 billion cubic meters (bcm) per year by 2027, double the current 8 bcm.
