ADNOC attracts investors to gas pipeline spin-off
Offshore staff
ABU DHABI, UAE – A consortium of investors has agreed to acquire a 49% stake in ADNOC Gas Pipeline Assets LLC.
The latter is a newly formed subsidiary of ADNOC with lease rights to 38 gas pipelines in the UAE, covering a total of 982.3 km (610 mi), with ADNOC holding a 51% majority interest. The gas pipeline network connects ADNOC’s upstream assets to local UAE off-takers
The investors comprise Global Infrastructure Partners, Brookfield Asset Management, Singapore’s sovereign wealth fund GIC, Ontario Teachers’ Pension Plan Board, NH Investment & Securities and Snam.
They plan to invest in select ADNOC gas pipeline assets valued at $20.7 billion.
ADNOC will lease its ownership interest in the assets to its new subsidiary for 20 years in return for a volume-based tariff, subject to a floor and a cap. The transaction should net the company more than $10 billion.
06/23/2020