Snam Sells Minority Stake In ADNOC Gas Pipelines To Lunate

(MENAFN- Trend News Agency) BAKU, Azerbaijan, January 28. Abu Dhabi-based investment firm Lunate, with $105 billion in assets under management, has announced its intention to acquire a minority stake in ADNOC Gas Pipelines, Trend reports.

This stake, indirectly held by Snam, Europe's leading gas infrastructure operator, is part of Lunate's Long-Term Capital Fund I. The fund targets both attractive cash yields and long-term capital appreciation for its investors.

ADNOC Gas Pipelines, a subsidiary of the Abu Dhabi National Oil Company (ADNOC), manages 38 pipelines spanning 982 kilometers across the UAE. The network is crucial for linking ADNOC's upstream assets to local buyers and plays a vital role in the country's energy infrastructure. The pipelines provide stable, predictable cash flows, making it a key player in the UAE's energy strategy.

Snam initially acquired its stake in ADNOC Gas Pipelines in 2020 as part of a consortium including GIP, GIC, Brookfield, and others. The deal allowed Snam to apply its natural gas expertise to enhance the asset's value.

Snam CEO Stefano Venier noted that the sale aligns with the company's strategic shift to focus on European energy infrastructure. "By rotating assets outside key European corridors, we can capitalize on their value," he said.

Lunate's Managing Partner, Murtaza Hussain, expressed excitement about the deal, emphasizing ADNOC Gas Pipelines' strategic importance. "This investment strengthens our partnership with ADNOC and helps us deliver on Lunate's goal of providing access to high-quality assets," he said.

The acquisition is pending the signing of the sale agreement and potential shareholder approval.

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