Lunate is set to acquire a minority stake in ADNOC Gas Pipelines from Italian gas infrastructure operator Snam for an undisclosed price.
Based in Abu Dhabi, UAE, Lunate is an alternative investment manager with $105bn in assets under management.
The transaction is subject to the finalisation of a sale and purchase agreement and the potential exercise of shareholder rights.
The acquisition will be carried out through Lunate’s Long-Term Capital Fund I, which is focused on securing stable cash yields and long-term capital growth for investors.
ADNOC Gas Pipelines, a subsidiary of ADNOC, holds lease rights to a 982km pipeline network consisting of 38 gas pipelines. The infrastructure connects ADNOC’s upstream operations to domestic off-takers in the UAE and plays a central role in the country’s energy supply chain.
Lunate said that the acquisition of a stake in a premium gas pipeline infrastructure asset marks a significant investment for the firm in energy infrastructure, while strengthening its real assets portfolio.
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 acquired its interest in ADNOC Gas Pipelines in 2020 as part of a consortium that included Global Infrastructure Partners (GIP), GIC, Brookfield Asset Management, Ontario Teachers’ Pension Plan Board, and NH Investment & Securities.
The consortium secured a 49% stake in the ADNOC subsidiary through Galaxy Pipeline Assets in a transaction that valued the company at $20.7bn.
Snam said that since the acquisition, it has applied its expertise in gas infrastructure management to optimise operational performance and contribute to the UAE’s broader energy network.
The sale of its minority stake is said to align with Snam’s strategic direction to focus on the development of energy transition infrastructure along key European energy corridors.
Snam CEO 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.”
Under the terms of the 2020 agreement, ADNOC agreed to lease its ownership interest in the pipeline assets to ADNOC Gas Pipelines for 20 years. The structure of the lease includes a volume-based tariff with a set floor and cap, allowing ADNOC to access institutional investment while retaining full operational control of the pipeline network.
