Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

ADNOC seals $20.7bn deal on gas pipelines

ADNOC has agreed the sale of a 49% stake in its gas pipelines for $20.7 billion, with a group of international investors.
ADNOC demonstrates its Panorama system at the ADIPEC conference

A group of international investors is buying a stake in ADNOC’s gas pipeline assets, which are valued at $20.7 billion.

The investor group includes 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 will buy a 49% stake in a new subsidiary, ADNOC Gas Pipeline assets. This will have lease rights to 38 pipelines, covering 982 km. ADNOC will hold the remaining 51%. The unit is valued at $20.7bn, valuing the 49% stake at $10.14bn.

ADNOC will lease the pipelines to the ADNOC Gas Pipelines unit for 20 years. In return, it will receive a volume-based tariff, on which there is a floor and a cap.

Tariffs will be charged on the sales gas and natural gas liquids (NGLs) that flow through the pipelines. The subsidiary will distribute 100% of its free cash to investors via quarterly dividends.

The sale will see more than $10bn go to ADNOC upfront. The company will retain management and responsibility for operational and capital expenditures.

In return, the consortium will receive stable cash flows with a low risk profile, ADNOC said.

“Today’s landmark investment signals continued strong interest in ADNOC’s low-risk, income-generating assets, and sets another benchmark for large-scale energy infrastructure investments in the UAE and the wider region,” said ADNOC’s CEO Sultan Al Jaber.

“It solidifies ADNOC’s position as an attractive partner and reinforces the UAE’s track record as the region’s go-to foreign direct investment destination, even during the current unprecedented circumstances.”

Smart growth

The chairman and managing partner of GIP Adebayo Ogunlesi said the gas network was “a core piece of midstream infrastructure in the UAE and this transaction presents a unique opportunity to invest in an asset of this quality and importance, while also supporting ADNOC in their smart growth strategy.

“This transaction underscores GIP’s strategy of investing in high quality infrastructure assets and developing long term strategic partnerships with industry leaders.”

The deal matches a similar deal in February 2019, under which KKR and BlackRock invested in ADNOC’s oil pipelines. The private equity groups invested around $4bn upfront and received a 40% stake in the oil pipeline unit.

Updated at 12:31 pm with clarification on the value of ADNOC Gas Pipelines and the amount paid by the consortium. 

Recommended for you

More from Energy Voice

Latest Posts