In 2020, GIP led a consortium that invested in Adnoc’s pipeline network. Credit: Johannes Rupf/Pixabay.

Global Infrastructure Partners (GIP) and Italy’s Snam are considering the sale of their respective stakes in Abu Dhabi National Oil Company’s (Adnoc) gas pipeline unit, reported Bloomberg News.

Snam owns approximately a 6% share in Adnoc Gas Pipeline Assets, while GIP owns the largest foreign share.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

The gas pipeline network connects upstream assets of Adnoc to local off-takers in the United Arab Emirates.

GIP is said to be consulting with undisclosed advisors to assess interest in its stake, people familiar with the matter told the publication.

Snam is also contemplating an exit strategy.

Discussions are ongoing and no definitive decisions have been made regarding a potential transaction, the sources said.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Abu Dhabi-based investment firm Lunate has shown interest in acquiring stakes from key owners within Adnoc Gas Pipeline Assets.

Some of the investors are undecided about selling or retaining their shares in the pipeline unit, according to the sources.

In 2020, GIP led a consortium that invested in Adnoc’s pipeline network, valuing the unit at nearly $21bn (Dh77.12bn), including debt.

This group, which also included GIC, Brookfield Asset Management, the Ontario Teachers’ Pension Plan and NH Investment & Securities, acquired a 49% interest for around $10.1bn.

The deal granted the investors a 20-year interest in the pipeline assets, with guaranteed returns.

Lunate, established by International Holding Company’s subsidiary and supported by ADQ, has previously engaged in similar investments.

Earlier this year, Lunate agreed to purchase a 40% stake in Adnoc’s oil pipeline network from BlackRock and KKR.

Abu Dhabi-based investment entity Lunate has a portfolio of $105bn in assets under management.