UAE investment firm Lunate buys stake in ADNOC Gas Pipelines

Dubai: The Abu Dhabi based investment firm Lunate has bought a minority stake in ADNOC Gas Pipelines. This equity was earlier held – indirectly – by Snam, the European gas infrastructure operator.

The deal will be made through Lunate’s Long-Term Capital Fund I, which targets ‘attractive cash yields and long-term capital appreciation’.

ADNOC Gas Pipelines has lease rights to 38 pipelines covering 982 kilometers across the UAE. The gas pipeline network serves as a ‘strategic link’ connecting ADNOC’s upstream assets to local UAE off-takers.

“It represents a high-quality and essential asset that generates stable and predictable cash flows in a critical sector and is a major contributor to the UAE’s energy infrastructure strategy,” said a statement.

Snam acquired the stake in ADNOC Gas Pipelines in 2020, along with other consortium partners, which includes GIP, GIC, Brookfield Asset Management, Ontario Teachers’ Pension Plan Board and NH Investment & Securities.

Lunate has $105 billion as assets under management.

“ADNOC Gas Pipelines is a key asset within the UAE’s energy infrastructure system,” said Murtaza Hussain, Managing Partner, at Lunate. “We are pleased to strengthen our partnership with ADNOC through this investment and deliver on Lunate’s mandate to offer investors access to high quality assets.”