Lunate, an Abu Dhabi-based investment manager with Dh105bn ($28.58bn) in assets, is set to acquire a minority stake in ADNOC Gas Pipelines, currently owned by European gas infrastructure operator Snam.
This strategic move will involve Lunate's long-term capital fund, which is designed to offer investors both attractive cash returns and the potential for long-term capital growth for investors.
The acquisition is contingent upon the finalisation of a sale and purchase agreement and the possible exercise of shareholder rights.
ADNOC Gas Pipelines, a subsidiary of the Abu Dhabi National Oil Company (ADNOC), has leasing rights over 38 pipelines spanning 982km across the United Arab Emirates (UAE).
This network is integral to utilising ADNOC's upstream assets to address local demand and play a vital role in the nation's energy infrastructure.
Lunate managing partner Murtaza Hussain said: “ADNOC Gas Pipelines is a key asset within the UAE’s energy infrastructure system. We are pleased to strengthen our partnership with ADNOC through this investment and deliver on Lunate’s mandate to offer investors access to high-quality assets.”
Snam initially secured its stake in ADNOC Gas Pipelines in 2020, in collaboration with a consortium that included GIP, GIC, Brookfield Asset Management, Ontario Teachers' Pension Plan Board and NH Investment & Securities, through the Galaxy Pipeline Assets HoldCo.
Snam chief executive officer Stefano Venier said: “The sale of the stake in ADNOC Gas Pipelines is consistent with the recently presented strategic plan, which focuses on the development of a pan-European multi-molecule 2025–2029 infrastructure. In this perspective, the rotation of some assets not located along the key European energy corridors where we operate in allows us to capitalise their value."
