U.S. investment firms in talks to acquire 49% stake in UAE natural gas pipelines

Global Infrastructure Partners and Brookfield Asset Management are in advanced talks to acquire a 49% stake in Abu Dhabi National Oil Co.’s natural gas pipelines for $15 billion (including debt), per multiple reports.

Why it matters: Neither the pandemic nor energy price volatility has slowed global infrastructure investing.

• Other investors would include Ontario Teachers’ Pension Plan, GIC, Snam, and NH Investment & Securities.

The bottom line:

"Abu Dhabi has been opening up the operations of its state-owned oil producer to foreign partners as part of a push to diversify its economy and generate additional sources of funding. Adnoc has already sold shares in its distribution unit and brought in international investors to its refining and oil field services business. KKR and BlackRock agreed last year to invest $4 billion in Adnoc’s oil pipeline network. GIC bought a stake in the business later."

Go deeper: How coronavirus will alter natural gas markets