ADNOC Signs $20.7 B Energy Infrastructure Deal

ADNOC Signs $20.7 B Energy Infrastructure Deal

The Abu Dhabi National Oil Company (ADNOC) announced that it has entered into an agreement with a consortium  of world-class infrastructure investors and operators to invest in ADNOC gas pipeline assets valued at $20.7 billion, according to a press release.

The investment companies include Global Infrastructure Partners (GIP), Brookfield Asset Management, Singapore’s sovereign wealth fund GIC, Ontario Teachers’ Pension Plan Board (Ontario Teachers’), NH Investment & Securities and Snam (the Consortium).

The consortium of investors will collectively obtain a 49% stake in ADNOC Gas Pipeline Assets LLC, a recently formed subsidiary of ADNOC with lease rights to 38 pipelines spanning a total 982.3 km. This deal will allow ADNOC to tap into pools of global institutional investment capital, whilst maintaining full operational control over the assets.

The deal means that ADNOC will lease its ownership interest in the assets to ADNOC Gas Pipelines for 20 years in return for a volume-based tariff, which may be subject to a floor and a cap. The structure of the deal is such that over $10 billion will be paid upfront to ADNOC.

Sultan Al-Jaber, ADNOC Group CEO, said, “We are pleased to once again partner with some of the world’s leading global infrastructure and institutional investors in what marks the region’s largest energy infrastructure investment. This milestone transaction demonstrates the trust and confidence placed in ADNOC by the global investment community and unlocks significant value from our pipeline portfolio, following last year’s groundbreaking oil pipeline infrastructure investment partnership.” 

 

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