GIP and Snam weighing stake sale in Adnoc's gas pipeline business
Published by Isabel Stagg,
Editorial Assistant
World Pipelines,
Global Infrastructure Partners (GIP) and Italy’s Snam are considering the sale of their respective stakes in Abu Dhabi National Oil Company's (Adnoc) gas pipeline unit, reported GlobalData citing Bloomberg News.
Snam owns approximately a 6% share in Adnoc Gas Pipeline Assets, while GIP owns the largest foreign share.
The gas pipeline network connects upstream assets of Adnoc to local off-takers in the United Arab Emirates.
GIP is said to be consulting with undisclosed advisors to assess interest in its stake, people familiar with the matter told the publication.
Snam is also contemplating an exit strategy.
Discussions are ongoing and no definitive decisions have been made regarding a potential transaction, the sources said.
Abu Dhabi-based investment firm Lunate has shown interest in acquiring stakes from key owners within Adnoc Gas Pipeline Assets.
Some of the investors are undecided about selling or retaining their shares in the pipeline unit, according to the sources.
In 2020, GIP led a consortium that invested in Adnoc's pipeline network, valuing the unit at nearly US$21 billion (Dh77.12 billion), including debt.
This group, which also included GIC, Brookfield Asset Management, the Ontario Teachers' Pension Plan and NH Investment & Securities, acquired a 49% interest for around US$10.1 billion.
The deal granted the investors a 20 year interest in the pipeline assets, with guaranteed returns.
Lunate, established by International Holding Company's subsidiary and supported by ADQ, has previously engaged in similar investments.
Earlier this year, Lunate agreed to purchase a 40% stake in Adnoc's oil pipeline network from BlackRock and KKR.
Abu Dhabi-based investment entity Lunate has a portfolio of US$105 billion in assets under management.
Read the latest issue of World Pipelines magazine for pipeline news, project stories, industry insight and technical articles.
World Pipelines’ June 2024 issue
The June 2024 issue of World Pipelines includes a keynote section on hydrogen pipeline transport, in which Contributing Editor Gordon Cope offers a broad look at the global hydrogen pipeline market, and Atmos International discusses modelling pure hydrogen pipelines. Also in the issue: technical articles on subsea survey, pigging tool performance, HDD operations for the Trans Mountain Expansion project, and more.
Read the article online at: https://www.worldpipelines.com/contracts-and-tenders/25062024/gip-and-snam-weighing-stake-sale-in-adnocs-gas-pipeline-business/
You might also like
World Pipelines Podcast: Going global with IPLOCA
In this episode, Elizabeth Corner speaks to Georges Hage, Executive Secretary at IPLOCA, about IPLOCA's insights on the culture and characteristics of the pipeline contractor community, and how it works to support sustainable energy infrastructure.
Fox Innovation & Technologies (FOX) acquires Sirio Solutions Engineering (SSE) S.p.A.
SSE will add complementary services and international exposure to the FOX footprint.
