Abu Dhabi National Oil Company (ADNOC) on June 23 said that it had signed a $10-billion deal with a consortium of investors to build gas infrastructure. CEO Sultan al-Jaber said the mega pipeline project is the largest energy infrastructure investment in the world in 2020.
The consortium consists of Global Infrastructure Partners (GIP), Singapore’s sovereign wealth fund GIC, Brookfield Asset Management, NH Investment & Securities, Italy’s Snam, and Ontario Teachers’ Pension Plan Board. ADNOC said that those investors would bring $10.1 billion in foreign direct investment in the company’s gas pipeline assets worth $20.7 billion.
ADNOC will form a subsidiary ADNOC Gas Pipeline Assets where it holds 51% stake, while the group of investors will own the remaining 49%. The contract said that in exchange for a volume-based tariff, ADNOC’s ownership of the pipeline will be leased to the subsidiary for 20 years. ADNOC Gas Pipeline will provide investors with 100% of free cash as quarterly dividends.
