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Snam moves out of Europe: it joins the Abu Dhabi gas networks

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Snam’s first step in energy risk outside Europe. The subsidiary of Cassa Depositi e Prestiti has signed an agreement, “in consortium with some of the most important international investment funds”, with The Abu Dhabi National Oil Company (ADNOC), one of the largest energy operators in the world, for an investment in the energy infrastructure of the United Arab Emirates.

The announcement was made by Snam itself on a morning note. The Snam team includes Global Infrastructure Partners (GIP), Brookfield Asset Management, GIC (the sovereign wealth fund of Singapore), Ontario Teachers’ Pension Plan and NH Investment & Securities: the contract provides that this consortium purchases 49% of ADNOC Gas Pipeline Assets LLC (ADNOC Gas Pipelines), a company that holds, for a period of 20 years, the fee-based management rights for the infrastructures (38 gas pipelines) that connect ADNOC’s upstream activities to the Abu Dhabi consumption points and terminals export and interconnection to neighboring Emirates. The remaining 51% of ADNOC Gas Pipelines will be controlled by ADNOC.

Snam defines the transaction as “one of the most important ever in the energy infrastructure sector at a global level, as well as the first acquisition of Snam outside Europe”. Price issue: 100% of ADNOC Gas Pipelines is valued at approximately $ 20.7 billion ($ 10.1 billion for 49%). “The consortium obtained approximately $ 8 billion in funding from a pool of international banks. The equity contribution is distributed proportionally among the members of the consortium, who all hold equal shares except for the leader GIP. For Snam, in particular , the outlay with own funds will be approximately 250 million dollars “.

The CEO of Snam, Marco Alverà, commented on the transaction in the note: “With this strategic agreement we strengthen our international presence by entering a country and a region in the central energy sector, further consolidating Italy’s role in the area of the Gulf. Our goal is to promote further collaboration opportunities, in particular in the energy transition. We will work with ADNOC and the consortium partners by leveraging our industrial skills and our innovative solutions in infrastructure management to make a contribution to the Emirates’ energy system. We have concluded this agreement by working entirely remotely in recent months, testifying to Snam’s resilience and its strong determination to continue the growth path of recent years “.

Source: La Repubblica.it

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