The agreement, signed on the sidelines of ADIPEC, marks another milestone in the growing strategic energy partnership between the United Arab Emirates (UAE) and Azerbaijan.

Established in 2014, SGC is an Azerbaijani energy holding company whose portfolio includes operating natural gas production assets and a 3,500 km pipeline network stretching from the Caspian Sea through Türkiye to southern Europe, with a current capacity to deliver up to 26 billion cubic meters of gas annually.

The agreement is expected to contribute to Azerbaijan’s economic growth while reinforcing the country’s role as a reliable energy partner.

The Heads of Terms were signed during ADIPEC by Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Executive Chairman and CEO of XRG, and Mikayil Jabbarov, Minister of Economy of the Republic of Azerbaijan and Chairman of SOCAR’s Supervisory Board.

The agreement also aims to expand XRG’s cooperation with SOCAR from gas production to the reliable delivery of energy resources to European markets seeking to diversify their supply sources. XRG’s holdings in the Caspian region currently include a strategic partnership with SOCAR in the Absheron gas and condensate field, where it holds a 30 percent stake. XRG also owns a 38 percent interest in the offshore Block I gas concession in Turkmenistan. In May 2024, SOCAR acquired a 3 percent interest in the SARB and Umm Lulu concession in Abu Dhabi from ADNOC.

The Southern Gas Corridor is a Closed Joint-Stock Company owned by the Ministry of Economy of the Republic of Azerbaijan and the State Oil Company of the Republic of Azerbaijan (SOCAR). Its assets include stakes in the Shah Deniz gas and condensate field, the South Caucasus Pipeline, the Trans-Anatolian Pipeline, the Trans-Adriatic Pipeline, and shares in the Azerbaijan Gas Supply Company Limited.

AzVision.az

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