In order to ensure the delivery of Azerbaijani natural gas to world markets, on 29 October 2013 the President of the Republic of Azerbaijan signed Order No. 15 establishing a State Commission to provide government oversight and comprehensive support for the efficient implementation of the full-field development of Shah Deniz gas-condensate field (“SD2”), the expansion of the South Caucasus Pipeline system (“SCPX”), Trans-Anatolian Pipeline (“TANAP”) and Trans-Adriatic Pipeline (“TAP”) (together, the “Projects”).

On 25 February 2014, the President signed Order No. 287 establishing the “Southern Gas Corridor” Closed Joint-Stock Company (SGC CJSC), founded with the State (Ministry of Economy of the Republic of Azerbaijan) holding 51 percent and SOCAR holding 49 percent, for the purpose of consolidating, managing and financing the state’s interests in the Projects. SGC CJSC was entered into the state register on 31 March 2014.

In accordance with that order, all of SOCAR’s participation interests in the Projects were transferred to SGC CJSC, and the financing and efficient management of those interests are carried out by SGC CJSC.

On 10 December 2024, the President signed Order No. 389 transferring to SOCAR the ownership rights over the state-owned shares in SGC CJSC representing 2 percent of its charter capital.

On 14 September 2026, in accordance with Orders No. 787 and No. 1208 of the President of the Republic of Azerbaijan and the sale and purchase agreement between the Ministry of Economy of the Republic of Azerbaijan (acting on behalf of the State) and XRG SGC Limited dated 31 January 2026, ownership rights over the shares constituting 12.5 percent of the charter capital of SGC CJSC previously owned by the State were acquired by XRG SGC Limited. As a result, SGC CJSC’s shares are now held 36.5 percent by the State, 51 percent by SOCAR and 12.5 percent by XRG SGC Limited.

SOCAR carries out the operational activities for the Projects on behalf of SGC.

The organisational structure of Southern Gas Corridor CJSC is as follows: