UAE. Abu Dhabi Pension Fund and ADQ to Invest $2.1 Billion in Gas Pipelines

UAE. Abu Dhabi Pension Fund and ADQ to Invest $2.1 Billion in Gas Pipelines

October 21, 2020

The Abu Dhabi Pension Fund (ADPF) and holding company ADQ have made a $2.1 billion investment in the state’s gas pipeline assets.

The state pension fund and holding company will take a one-fifth stake in the gas pipeline assets owned by the Abu Dhabi National Oil Company (ADNOC), which oversees 38 pipelines spanning 610 miles, the state-owned oil company ADNOC said last week.

“The addition of these high-caliber UAE investors sets a new benchmark for leading global and domestic institutional investors to deploy long-term equity capital into key ADNOC energy infrastructure assets,” the UAE Minister of Industry and Advanced Technology and ADNOC Group CEO Dr. Sultan Al Jaber said in a statement.

The two have joined a consortium of yield-seeking global investors who took stakes in the ADNOC Gas Pipelines subsidiary earlier this summer. Brookfield Asset Management, Singapore’s sovereign wealth fund GIC, New York-based Global Infrastructure Partners (GIP), NH Investment and Securities, Italy’s Snam, and the Ontario Teachers’ Pension Plan Board (OTPPB) have jointly invested $10.1 billion to gain a 49% stake in the assets. It’s the second time the ADPF has entered an investment partnership for ADNOC’s infrastructure assets.

Last year, the pension fund made a $300 million investment into some of the firm’s oil pipelines. Over the summer, ADNOC and ADQ also entered a joint venture to fund industrial projects within oil and natural gas complex Ruwais Derivatives Park.

Source: PPI