Abu Dhabi National Oil Company (ADNOC, United Arab Emirates) has signed a US$10bn gas infrastructure agreement to sell a 49% stake in ADNOC Gas Pipeline Assets to a consortium of investors comprising Global Infrastructure Partners, Brookfield Asset Management, Singapore’s sovereign wealth fund GIC, Ontario Teachers’ Pension Plan Board (Canada), South’s Korea NH Investment & Securities and Snam (Italy). ADNOC Gas Pipeline Assets is a newly formed subsidiary of ADNOC, which owns 20-year lease rights for 38 pipelines covering a total of 982 km in Abu Dhabi and connecting ADNOC’s upstream assets to local UAE off-takers.
As part of the deal, ADNOC will pay ADNOC Gas Pipelines a volume-based tariff for the use of pipelines to transport gas from ADNOC’s upstream assets to Abu Dhabi’s facilities. The tariff will be charged on the total volumes transported through the pipelines, together with liquefied natural gas (LNG) flows, subject to a volume cap. ADNOC will retain a 51% majority stake in ADNOC Gas Pipeline Assets and will remain the owner of the pipelines.