Global investment giant KKR has acquired a minority stake in the entity leasing Abu Dhabi National Oil Company's gas pipeline assets, bridging further into the Gulf's energy infrastructure sphere. The financial terms were undisclosed; key rights and management powers remain with ADNOC.

This marks a continuation of KKR's partnership with ADNOC: in 2019, it invested in the oil pipeline business-then among the first foreign institutional investments into Gulf energy infrastructure. That holding was sold in 2024 to Abu Dhabi's Lunate. ADNOC Gas Pipeline Assets oversees a network linking upstream gas output to local consumers across the UAE.

The structure of the deal emphasises long-duration capital and aligns with KKR's infrastructure investment mandates. Although KKR now holds a minority stake, ADNOC retains full operational control-meaning the state maintains strategic influence over technical, maintenance, and management decisions.

Observers interpret this move as part of a broader Gulf trend: Gulf sovereign and national utilities tapping international capital while preserving oversight of core operational assets. Saudi Aramco, for instance, executed an $11 billion lease-and-leaseback for its Jafurah gas facilities earlier this year. Kuwait, too, has been assessing similar lease-back models for its oil pipeline systems.

KKR has been accelerating its regional footprint: it has appointed General David Petraeus as head of its Middle East operations and made a major investment into the Dubai-based data centre platform Gulf Data Hub. The firm now manages over $90 billion in infrastructure assets globally, and this entry into ADNOC's gas infrastructure underscores its conviction in Gulf energy prospects.

Critics question the opacity of such deals. With no disclosed valuation, external oversight is limited. There is also debate about whether this signals growing dependency on private capital for critical energy infrastructure-a domain traditionally held tightly within sovereign control.

Still, ADNOC's decision to partner reflects its ambition to diversify funding sources while reinforcing confidence in the UAE's markets. The gas pipelines lease model offers an avenue to monetise infrastructure without ceding operational influence.

KKR brings to the table deep experience in global energy infrastructure and a track record of deploying institutional capital for long-term returns. For ADNOC, the arrangement supplies liquidity and endorses its infrastructure's attractiveness to global investors.

Notice an issue? Arabian Post strives to deliver the most accurate and reliable information to its readers. If you believe you have identified an error or inconsistency in this article, please don't hesitate to contact our editorial team at editor[at]thearabianpost[dot]com . We are committed to promptly addressing any concerns and ensuring the highest level of journalistic integrity.

MENAFN12102025000152002308ID1110183924