Lunate to acquire minority stake in ADNOC Gas Pipelines

Lunate, the Abu Dhabi-based global alternative investment manager with $105bn in assets under management, has announced plans to acquire a minority stake in ADNOC Gas Pipelines, which is indirectly held by Snam, Europe’s leading gas infrastructure operator.

The transaction, which is subject to the signing of a sale and purchase agreement and the potential exercise of relevant shareholders’ rights, will be conducted through Lunate’s Long-Term Capital Fund I.

This fund aims to provide investors with attractive cash yields and long-term capital appreciation.

ADNOC Gas Pipelines, a subsidiary of the Abu Dhabi National Oil Company (ADNOC), holds lease rights to 38 pipelines spanning a total of 982 kilometres across the UAE.

The gas pipeline network serves as a vital connection between ADNOC’s upstream assets and local UAE off-takers.

The pipelines represent an essential asset, generating stable and predictable cash flows in a critical sector, and play a significant role in the UAE’s broader energy infrastructure strategy.

Snam’s sale of stake to Lunate aligns with its strategic plan

Snam initially acquired its stake in ADNOC Gas Pipelines in 2020, as part of a consortium including Global Infrastructure Partners (GIP), GIC, Brookfield Asset Management, Ontario Teachers’ Pension Plan Board, and NH Investment & Securities, through Galaxy Pipeline Assets HoldCo Limited.

During its ownership, Snam has applied its industrial expertise and innovative solutions in natural gas management to add value to the asset and contribute to the UAE’s energy system.

Stefano Venier, CEO of Snam, commented, “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 on their value.”

Murtaza Hussain, managing partner at Lunate, 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.”