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GIP and Snam weighing stake sale in Adnoc's gas pipeline business

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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.



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