Lunate, an Abu Dhabi-based global investment manager with USD 105 billion in assets, plans to acquire a minority stake in ADNOC Gas Pipelines, indirectly held by Snam, Europe’s leading gas infrastructure operator. Lunate will acquire the stake through its Long-Term Capital Fund I, pending the signing of a sale agreement and any relevant shareholder rights.
Strategic Role of ADNOC Gas Pipelines
ADNOC Gas Pipelines is a subsidiary of Abu Dhabi National Oil Company (ADNOC) holding lease rights over 38 pipelines spread across 982 kilometers in the UAE. The pipeline network remains essential to the integration of ADNOC upstream assets with local off-takers, constituting part of the energy infrastructure in the UAE. Additionally, this asset is crucial for providing stable, predictable cash flows in the energy sector and supports the country’s energy strategy.
Snam’s Involvement and Asset Rotation Strategy
Snam acquired its stake in ADNOC Gas Pipelines in 2020. It did this with the support of consortium partners: GIP, GIC, Brookfield Asset Management, Ontario Teachers’ Pension Plan Board, and NH Investment & Securities. Through its expertise in natural gas management, Snam has enhanced the value of this asset and also played a part in the UAE’s energy system.
Stefano Venier, Snam’s CEO, 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 capitalize their value.”
Also read: ADNOC Reaches Industry-Leading Carbon Intensity at Shah Field
Murtaza Hussain, Managing Partner at Lunate, expressed enthusiasm about the acquisition, highlighting that ADNOC Gas Pipelines is a crucial asset within the UAE’s energy infrastructure. He also emphasized that Lunate is strengthening its partnership with ADNOC through the investment and fulfilling its goal of offering investors high-quality assets.