ADNOC announces $20.7bn energy infrastructure deal

ADNOC announces $20.7bn energy infrastructure deal

ADNOC announced that it has entered into an agreement with some of the world's leading infrastructure investors and operators, sovereign wealth and pension funds. A consortium of investors comprising Global Infrastructure Partners (GIP), Brookfield Asset Management, Singapore's sovereign wealth fund GIC, Ontario Teachers' Pension Plan Board (Ontario Teachers'), NH Investment

In one of the largest global energy infrastructure transactions, the consortium will collectively acquire a 49% stake in ADNOC Gas Pipeline Assets (henceforth referred to as ADNOC Gas Pipelines), a newly formed subsidiary of ADNOC with lease rights to 38 pipelines covering a total of 982.3 kilometres, with ADNOC holding the 51% majority stake. The innovative transaction structure allows ADNOC to tap new pools of global institutional investment capital, whilst at the same time maintaining full operating control over the assets included as part of the investment.

Under the terms of the agreement, ADNOC will lease its ownership interest in the assets to ADNOC Gas Pipelines for 20 years in return for a volume-based tariff subject to a floor and a cap. The transaction will result in upfront proceeds of over $10bn to ADNOC and is subject to customary closing conditions and regulatory approvals.

The gas pipeline network connects ADNOC's upstream assets to