Adnoc's XRG prepares for next phase of Azerbaijan gas development

Adnoc's international energy investment arm, XRG, is set to advance its gas development plans in Azerbaijan with a multi-phase strategy. XRG recently finalized its stake acquisition in the famed Absheron offshore gas and condensate field, which will commence production in 2029, with state oil company Socar and French firm TotalEnergies each holding a 35 per cent share.

The field is projected to generate up to 600 million cubic feet of gas and 47,000 barrels of condensate daily, with recoverable resources of up to five trillion cubic feet.

XRG's president, Mohamed Al Aryani, highlighted Azerbaijan's pivotal role in bridging Caspian resources to international markets. The company's investment in the project underscores its commitment to energy security, economic growth, and long-term value creation. XRG has been steadily expanding its global investment portfolio, aiming to double its asset value within a decade. Launched in 2024, XRG is an international lower-carbon energy and chemicals investment company, with assets valued over $80 billion.

XRG's recent moves include signing agreements with German firms covering LNG, renewable energy, advanced materials, and technology, as well as entering Venezuela's energy sector with BP and Qatar's UCC Holding. The company also recently increased its stake in the US Rio Grande LNG project by 7.6 per cent. Azerbaijan boasts the world's 20th-largest gas reserves, comprising nearly 1.7 trillion cubic metres, accounting for over 90 per cent of its exports.

The nation's strategic location between the Caspian Sea, Central Asia, the Middle East, and Europe positions it for development as a comprehensive energy trading hub.