AgreementsAnalysis
XRG acquires Southern Gas Corridor stake, signs SEFE cooperation MOU
The transaction supports an integrated Caspian gas position and includes exploration of supply, infrastructure and shipping opportunities to European markets.
XRG, the international investment arm of ADNOC, completed acquisition of an equity stake in Southern Gas Corridor CJS from Azerbaijan's Ministry of Economy. The transaction was disclosed on 27 January 2025. XRG also signed a memorandum of understanding with German gas trader SEFE to explore cooperation across the natural gas and LNG value chain, covering supply, infrastructure and shipping opportunities directed at Germany and the wider European market.
Four areas of potential cooperation identified#
The memorandum identifies four areas for potential cooperation: ensuring security of supply, developing and growing markets, building supply chain resilience, and optimizing portfolios and shipping. The parties will examine how to combine ADNOC's supply from the UAE and XRG's international sources with SEFE's presence in markets, its trading capabilities, its customer relationships and its access to infrastructure. The partnership could encompass investment in energy infrastructure and its development, alongside measures for optimizing gas and LNG portfolios and the movement of cargoes. The memorandum was signed during a UAE state visit to Germany and builds on an existing relationship between ADNOC and SEFE.
ADNOC first delivered Middle East LNG to Germany in 2023#
ADNOC made its first delivery of Middle East LNG to Germany in early 2023. The company has since signed long-term LNG agreements with German customers and supplies piped gas through the Southern Gas Corridor. The UAE announced a long-term intention to invest a further €40 billion in Germany, following existing investments of €19 billion. ADNOC stated that the agreement with SEFE combines capabilities and opens new opportunities across the gas and LNG value chain. The agreement expands XRG's existing investment footprint in Germany, which includes Covestro, into the gas and LNG value chains.
Southern Gas Corridor equity stake supports Caspian strategy#
The Southern Gas Corridor equity stake acquisition from Azerbaijan's Ministry of Economy supports XRG's strategy in building an integrated and resilient gas position across the Caspian region. The corridor delivers piped gas supply to European markets. The transaction was completed in January 2025. No financial terms were disclosed in the published sources. SEFE stated that closer cooperation across the value chain is critical in the current energy landscape and that the agreement aims to enhance the resilience of Germany's and Europe's energy systems by bringing together global supply capabilities with market presence, trading expertise, customer relationships and infrastructure access.
Sources2 sources across 2 domains
- marinelink.commarinelink.comMOU signed between XRG, ADNOC and SEFE covering cooperation across gas and LNG value chain, four areas of cooperation, investment figures, first LNG cargo delivery date, state visit context, ADNOC and SEFE statements
- forbesmiddleeast.comforbesmiddleeast.comXRG completed acquisition of equity stake in Southern Gas Corridor CJS from Azerbaijan's Ministry of Economy, supporting integrated Caspian strategy
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