ADNOC brings on board two other heavyweight investors onto its pipeline operating subsidiary. Image Credit: Gulf News Archive

Abu Dhabi: Abu Dhabi Pension Fund (ADPF) and ADQ, the holding company for multiple assets, will invest $2.1 billion in select gas pipeline infrastructure assets owned by Abu Dhabi National Oil Company (ADNOC).

ADNOC will thus divest 20 per cent in ADNOC Gas Pipelines HoldCo, a unit that holds the energy giant’s complete stake in ADNOC Gas Pipeline Assets, to Abu Dhabi Pension Fund and ADQ. ADNOC Gas Pipelines has lease rights to 38 gas pipelines covering a total of 982 kilometers.

In July, a consortium of global investors invested $10.1 billion for a collective 49 per cent stake in the same assets. “The addition of these high-calibre 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,” said Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO.

With the addition of these domestic investors, ADNOC can also tap new pools of long-term equity capital, while still maintaining operating and ownership control over the assets included as part of the investment agreement, the company said.

“This follow-on investment will generate stable, long-term value and returns to both Abu Dhabi Pension Fund and ADQ’s stakeholders,” said Al Jaber. “Their engagement highlights and underlines the attractiveness and long-term value creation potential of our unique energy assets to the global investment community.”