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XRG acquires Absheron field stake and 3,500km pipeline network
The Adnoc international arm holds 30 percent of the Caspian gas field and 12.5 percent of the Southern Gas Corridor connecting Azerbaijan to Türkiye and Europe.
XRG, the international investment arm of Adnoc, acquired a 30 percent interest in the Absheron gas field off Azerbaijan's coast in August 2023, joining Azerbaijan's Socar and France's TotalEnergies. The offshore field, located approximately 100 kilometres from the coast in the Caspian Sea, began producing gas that year for Azerbaijan's domestic market. In September 2026, the partners approved an expansion to increase production from 150 million to 600 million cubic feet of gas per day, with operations targeted to begin in 2029. Ali Al Hammadi, Asset Management Manager for International Gas at XRG, stated that a gas field becomes a business when its gas can be delivered to customers who need it.
Türkiye buyer secured under long-term agreement#
Türkiye's state energy company Botas signed a long-term agreement to purchase gas from the expanded development. The commercial arrangement was in place before the expansion approval. The field's production is intended to supply buyers in Azerbaijan and Türkiye, with the expanded capacity representing a fourfold increase from current output. The Absheron field sits beneath the waters of the Caspian Sea, with the development involving offshore production infrastructure and subsea connections.
Pipeline stake adds 3,500km transport network#
XRG completed the acquisition of a 12.5 percent stake in Southern Gas Corridor CJSC in September 2026. The corridor stretches approximately 3,500 kilometres, connecting Azerbaijan to Türkiye and southern Europe through pipelines crossing Georgia, Türkiye, Greece and Albania, continuing beneath the Adriatic Sea to Italy. The investment adds gas transportation infrastructure to XRG's existing interest in the Absheron field. The corridor connects Azerbaijani gas resources with European markets, with the network crossing multiple countries between the Caspian region and southern Europe.
International arm established November 2024#
XRG was established by Adnoc in November 2024 to expand international activities across gas, chemicals and energy solutions. The Azerbaijan investments are among the projects through which the Abu Dhabi-headquartered company is developing its portfolio. The company holds interests in both the offshore gas resources and the infrastructure connecting producers with customers across borders. The investments combine a stake in the field development with a stake in the transportation network required to move gas from the Caspian region to buyers in Türkiye and Europe.
Sources1 source across 1 domain
- khaleejtimes.comKhaleej TimesXRG acquired 30 percent stake in Absheron in August 2023, expansion approved September 2026 to increase production from 150 million to 600 million cubic feet per day by 2029, XRG acquired 12.5 percent stake in Southern Gas Corridor CJSC in September 2026, corridor stretches 3,500 kilometres, Botas s
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