The Southern Gas Corridor CJSC (SGC) will begin channeling most of its annual cash flow to SOCAR and the Azerbaijani government in the form of dividends starting in 2026, Azernews reports, citing Fitch Ratings.

According to the agency, SGC’s net leverage ratio (EBITDA-based) is projected to average around 0.5x between 2025–2028, compared to 0.3x in 2024, supported by continued strong cash flows and low capital expenditures. Fitch’s assessment is based on the company’s consolidated profile, which includes full consolidation of TANAP (including dividends to minority shareholders), proportional consolidation of its share in the Shah Deniz production-sharing agreement, and dividend income from the South Caucasus Pipeline and TAP.

Fitch analysts also expect no changes to SGC’s rating structure even if SOCAR sells its stake in XRG, the investment platform of Abu Dhabi National Oil Company (ADNOC).

“We believe Azerbaijan will retain control and decision-making authority over the Southern Gas Corridor CJSC,” the report states. “If the parties decide to expand project capacity, this would positively influence corporate governance and technological support, while also improving access to financing.”