ADNOC signs $2.1bn deal with ADPF, ADQ for ADNOC Gas Pipeline Assets

Abu Dhabi National Oil Company (ADNOC) has signed a $2.1 billion deal to offload a stake of 20% in ADNOC Gas Pipelines HoldCo to UAE state-owned investors Abu Dhabi Pension Fund (ADPF) and ADQ.

The deal enables the entry of ADPF and ADQ into ADNOC Gas Pipeline Assets, a natural gas pipeline partnership in the UAE created by ADNOC. The duo now joins ADNOC, and six global investors – Global Infrastructure Partners (GIP), Ontario Teachers’ Pension Plan Board, Brookfield Asset Management, GIC, Snam, and NH Investment & Securities.

ADNOC Gas Pipelines HoldCo is a wholly-owned ADNOC subsidiary that holds 100% of the UAE national oil company’s interest in the natural gas pipeline partnership.

Currently, ADNOC holds a 51% stake in ADNOC Gas Pipeline Assets, while the six global investors own the remaining 49% stake following a $10.1 billion investment.

ADNOC signs $2.1bn deal with ADPF, ADQ for ADNOC Gas Pipeline Assets. Photo courtesy of Abu Dhabi National Oil Company.

Dr. Sultan Al Jaber – UAE Minister of Industry and Advanced Technology and ADNOC Group CEO said: “We are delighted to once again partner with both Abu Dhabi Pension Fund and ADQ. Joining our global investor consortium partners in this landmark energy infrastructure investment, the addition of these high-caliber UAE investors sets a new benchmark for leading global and domestic institutional investors to deploy long-term equity capital into key ADNOC energy infrastructure assets.

“By partnering again with Abu Dhabi Pension Fund, the custodian and investor of the UAE’s citizens savings and long-term prosperity, ADNOC is playing a pivotal role in ensuring the financial wellbeing of the UAE community and its people. This follow-on investment will generate stable, long-term value and returns to both Abu Dhabi Pension Fund and ADQ’s stakeholders.

“Their engagement highlights and underlines the attractiveness and long-term value creation potential of our unique energy assets to the global investment community, further reinforcing ADNOC’s role as a primary driver in attracting tier one global institutional capital into Abu Dhabi and the UAE.”

ADNOC Gas Pipeline Assets has lease rights to 38 natural gas pipelines with a combined length of 982.3km in the UAE.

The entry of ADPF and ADQ in ADNOC Gas Pipeline Assets enables ANDOC to make use of new pools of long-term equity capital besides retaining its operating and ownership control over the natural gas pipelines.

Khalaf Abdullah Rahma Al Hammadi – Director General of Abu Dhabi Pension Fund said: “The Fund is keen to implement the directives of the UAE’s wise leadership and achieve the Abu Dhabi government’s vision aimed at building strong partnerships between major national institutions to support the national economy and achieve the highest possible benefits.

“This agreement comes after the successful investment cooperation between the Fund and ADNOC in the oil pipeline infrastructure space, which concluded last year and marked a major shift in the quality of the Fund’s investments. The Fund is looking to strengthen its strategic partnership with ADNOC to further diversify its investment portfolio and achieve long-term returns for its stakeholders.”

It can be recalled that ADNOC has a similar oil pipeline partnership in place with various global and domestic investors such as KKR, BlackRock, GIC, and Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF). The partnership named as

The UAE national oil company created a partnership called ADNOC Oil Pipelines – Sole Proprietorship (ADNOC Oil Pipelines), which owns 18 crude oil pipelines in the UAE.