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ADNOC Gas awards $2.1bln in contracts to enhance LNG supply infrastructure. Image courtesy: WAM
UAE: Abu Dhabi-based Lunate intends to acquire a minority stake in ADNOC Gas Pipelines that is indirectly held by Europe’s gas infrastructure operator Snam, according to a press release.
Lunate is a global alternative investment manager with $105 billion in assets under management (AUM). Meanwhile, the transaction is subject to the signing of the sale and purchase agreement as well as to the potential exercise of the relevant shareholders’ rights.
The equity takeover transaction will be made through Lunate’s Long-Term Capital Fund I that aims to provide investors with attractive cash yields and long-term capital appreciation.
ADNOC Gas Pipelines, a subsidiary of ADNOC, has lease rights to 38 pipelines covering a total of 982 kilometres across the UAE.
The gas pipeline network serves as a strategic link connecting ADNOC’s upstream assets to local UAE off-takers. It represents a high-quality and essential asset that generates stable and predictable cash flows in a critical sector and is a major contributor to the UAE’s energy infrastructure strategy.
The CEO of Snam, 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.”
Venier noted: “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."
Meanwhile, Lunate’s 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.”
It is worth noting that Snam acquired its stake in ADNOC Gas Pipelines in 2020, along with other consortium partners, including GIP, GIC, Brookfield Asset Management, Ontario Teachers’ Pension Plan Board and NH Investment & Securities, through Galaxy Pipeline Assets HoldCo Limited.
Over this period, Snam has leveraged its industrial skills, know-how and innovative solutions in natural gas management to bring value to the asset and the UAE’s wider energy system.
In July 2024, Lunate Capital launched the Chimera J.P. Morgan Global Sukuk ETF as an exchange-traded fund (ETF) on the Abu Dhabi Securities Exchange (ADX).
Source: Mubasher
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