ADNOC to Divest 20% Stake in Gas Pipeline Assets

(P&GJ) — The Abu Dhabi National Oil Company (ADNOC) announced it will be divesting a 20% stake in its gas pipeline assets managed by ADNOC Gas Pipelines to the Abu Dhabi Pension Fund (ADPF) and ADQ, a regional holding company. 

The two groups will invest a total of $2.1 billion into select ADNOC gas pipeline infrastructure assets.

Under the terms of the agreement, ADNOC will divest 20% in ADNOC Gas Pipelines, a wholly owned ADNOC entity that holds 100% of ADNOC’s interest in ADNOC Gas Pipelines assets, to ADPF and ADQ.

ADNOC Gas Pipelines is a subsidiary of ADNOC with lease rights to 38 gas pipelines covering a total of 982 kilometers (610 miles).

In July, a consortium of global investors comprising Global Infrastructure Partners, Brookfield Asset Management, Singapore’s sovereign wealth fund GIC, Ontario Teachers’ Pension Plan Board, NH Investment & Securities and Snam, invested $10.1 billion for a collective 49% stake in the same select ADNOC gas pipeline infrastructure assets.

ADNOC also sold a 40% stake in its oil pipeline assets last year to U.S. investment firms KKR and BlackRock for $4 billion.

The transaction is expected to close later this month, subject to customary closing conditions and all regulatory approvals.

Bank of America Securities, First Abu Dhabi Bank and Mizuho Securities acted as financial advisors to ADNOC while Moelis & Company acted as an independent financial advisor to ADNOC.

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