Azerbaijan's oil fund takes stake in ADNOC Gas Pipeline Assets

Dubai: The Azerbaijani oil fund has invested $50 million in ADNOC Gas Pipeline Assets. This was done through a special investment fund managed by Abu Dhabi based Lunate Capital.

Back in January, Lunate had bought a stake in ADNOC Gas Pipelines.  

The investment in the ADNOC entity 'aligns with SOFAZ's (State Oil Fund of the Republic of Azerbaijan) strategy to diversify its portfolio through exposure to resilient, income-generating infrastructure assets', said a statement.

Plus, it adds to the state fund's deepening 'economic engagement with the GCC region'.

The ADNOC Gas Pipeline Assets has 'usage rights over one of the United Arab Emirates’ (UAE) most critical energy assets'.

"The gas pipeline infrastructure network is subject to a long-term usage agreement between AGPA and ADNOC, providing strong visibility over cash flows backed by committed volumes," said the statement.

Spread over 982 kilometers, the AGPA network comprises 38 pipelines—including 12 dedicated to sales gas, 15 for gas injection, and 11 for natural gas liquids.

Farhad Zeynalov, Chief Investment Officer at SOFAZ, saidd: “AGPA stands out as a high-quality, strategically vital infrastructure platform with long-term relevance and strong income-generating potential.”