Italy’s gas grid operator Snam has announced its decision to sell its indirect minority stake in ADNOC Gas Pipelines to Lunate, an Abu Dhabi-based investment firm. This move aligns with Snam’s long-term vision of consolidating its position in Europe’s energy infrastructure while reducing exposure to assets outside key European corridors.
The decision reflects a broader industry trend, where companies are focusing on regional energy security and infrastructure development amid evolving global market dynamics.
Details of the Transaction
Snam initially acquired nearly 6% of ADNOC Gas Pipelines in 2020 through Galaxy Pipeline Assets HoldCo Limited, a consortium comprising major institutional investors, including:
- Global Infrastructure Partners (GIP)
- GIC (Singapore’s sovereign wealth fund)
- Brookfield Asset Management
- Ontario Teachers’ Pension Plan Board
- NH Investment & Securities
While the financial terms remain undisclosed, sources indicate that Snam expects to record a capital gain from the sale.
ADNOC Gas Pipelines: A Key Asset
As a subsidiary of Abu Dhabi National Oil Company (ADNOC), ADNOC Gas Pipelines holds lease rights to 38 pipelines, spanning 982 km (610 miles) across the United Arab Emirates. The network plays a vital role in the region’s energy distribution infrastructure, facilitating the movement of natural gas across industrial and consumer markets.
Snam’s CEO, Stefano Venier, emphasized that the divestment aligns with the company’s strategic plan to develop a multi-molecule infrastructure in Europe, focusing on cleaner energy sources and reducing exposure to non-core assets.
Implications for Snam and the Energy Market
The sale underscores a shift in Snam’s portfolio strategy, as it looks to bolster European energy networks while streamlining its global investments. This also marks another significant transaction in the Middle Eastern energy sector, where ADNOC continues to attract foreign investment and strengthen partnerships in line with the UAE’s broader economic diversification goals.
The deal’s completion is expected to bring financial gains for Snam while enabling Lunate to expand its energy investment footprint within the region.
