Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC

BlackRock no longer in the race for ADNOC's gas pipeline assets

BlackRock Inc has dropped out of the race to become an investor in Abu Dhabi National Oil Co’s (ADNOC) natural gas pipeline assets, two sources familiar with the matter said.

That leaves Italian infrastructure firm Snam and Global Infrastructure Partners among at least six remaining bidders, they said.

BlackRock, along with buyout firm KKR & Co, last year bought a 40% stake in ADNOC Oil Pipelines for $4 billion, and was also looking at a deal involving ADNOC’s gas pipeline infrastructure, the sources said.

However, it has now decided not to bid for the assets.

“BlackRock is not there anymore,” said one of the sources with knowledge of the matter, adding the timing is not right for the world’s largest fund manager given the global market turmoil linked to the coronavirus outbreak.

ADNOC, BlackRock and Snam declined to comment.

Global Infrastructure Partners did not immediately respond to a Reuters request for comment. The sources declined to be identified because the information was not public.

ADNOC hired Bank of America Merrill Lynch and Mizuho last year to arrange the lease of its natural gas pipeline assets, Reuters reported, citing sources familiar with the matter, as it sought new partnerships in an era of lower oil prices. ADNOC, which manages almost all of the proven oil reserves in the United Arab Emirates, has embarked on a major shake-up over the past few years to cut costs, boost efficiency and monetise its assets.

Snam is looking at ADNOC natural gas pipelines alongside other infrastructure funds such as Global Infrastructure Partners, the two sources said.

There are six to seven bidders in the race, one of the sources said.

“It’s a big price tag, so there could be a big alliance among the various subjects interested,” one of the sources said.

Two other sources said it would makes sense for ADNOC to delay the bidding process given the size of the transaction and global market uncertainty. (Additional reporting by Hadeel Al Sayegh and Dahlia Nehme; Editing by Jan Harvey)

Copyright © 2019. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo


Editorial Comment
-Adrienne Blume
Global gas is facing a demand hit from the coronavirus pandemic and a structural oversupply in the LNG market following the startups of new LNG export projects in Australia and the U.S.
Industry Focus: Russia Accelerates Fight For Global Gas Export Market Share
-Eugene Gerden
Russia aims to ramp up its efforts to gain more gas export market share this year, despite an unfavorable business environment and growing pressure from major competitors.
Regional Focus: South Africa’s transport strategy to shape country’s gas sector
-Shem Oirere
South Africa’s Gas Utilization Master Plan outlines how the gas sector will be developed. As the country proceeds with the plan,

Best Practices in Supporting Front Line HPI Operations Remotely in Response to Covid-19

Register Now

To ensure employee safety, HPI companies had to quickly pivot to a remote support model with many subject matter experts (SMEs) and engineering staff working remotely supporting front line, sequestered critical operations and field operators.

What are the best practices and lessons learned from this new remote operational support model? What have been technologies and work processes that are enabling effective and efficient remote operational support? Is this the “new norm” going forward even when the impact of Covid-19 abates? If not, how will remote support of critical operations be changed?

If this topic and questions are of interest to you and your organization, please attend this special HPI webinar with a panel of leading industry customer experts who will discuss their perspectives. Attendees will have the opportunity to ask questions for the panelists.

May 18, 2020 10:00 AM CDT

Register Now


Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2020 Gulf Publishing Holdings LLC.