Azerbaijan’s SOFAZ Invests $50 Million in ADNOC Gas Pipeline Assets Through Lunate-Managed Fund

 Source : Gulf Business


Azerbaijan’s SOFAZ Invests $50 Million in ADNOC Gas Pipeline Assets Through Lunate-Managed Fund

Abu Dhabi, UAE – May 30, 2025 – The State Oil Fund of the Republic of Azerbaijan (SOFAZ) has announced a $50 million investment in ADNOC Gas Pipeline Assets LLC (AGPA), a critical energy infrastructure asset in the United Arab Emirates. The investment, facilitated through a specialized fund managed by Abu Dhabi-based global alternative investment firm Lunate Capital, marks a significant step in SOFAZ’s strategy to diversify its portfolio and strengthen economic ties within the Gulf Cooperation Council (GCC) region.

Strategic Investment in UAE Energy Infrastructure

ADNOC Gas Pipeline Assets, a subsidiary of the Abu Dhabi National Oil Company (ADNOC), holds leasing rights to a network of 38 pipelines spanning 982 kilometers across the UAE. This extensive network, which includes 12 pipelines dedicated to sales gas, 15 for gas injection, and 11 for natural gas liquids, plays a pivotal role in supporting ADNOC’s upstream operations and meeting local energy demand. The infrastructure is governed by a long-term usage agreement with ADNOC, ensuring stable cash flows backed by committed volumes, even during periods of global energy market volatility.

Farhad Zeynalov, Chief Investment Officer at SOFAZ, emphasized the strategic importance of the investment, stating, “AGPA stands out as a high-quality, strategically vital infrastructure platform with long-term relevance and strong income-generating potential. We are delighted with the opportunity to partner with Lunate on this transaction, which marks a significant step in advancing SOFAZ’s investment footprint across the GCC region and aligns with our broader vision of building a resilient and diversified portfolio.”

Lunate Capital’s Role in Facilitating the Deal

Lunate Capital, an Abu Dhabi-based alternative investment manager with $105 billion in assets under management, facilitated the investment through its Long-Term Capital Fund I. The fund is designed to provide investors with attractive cash yields and long-term capital appreciation. Nabeel Qadir, Senior Partner at Lunate, highlighted the value of the partnership, saying, “We are excited to provide SOFAZ the opportunity to invest in ADNOC Gas pipelines, a critical asset in the UAE’s energy infrastructure, offering highly attractive, risk-adjusted returns.”

This transaction follows Lunate’s recent acquisition of a minority stake in ADNOC Gas Pipelines from Snam, Europe’s leading gas infrastructure operator, in January 2025. That deal, also executed through Lunate’s Long-Term Capital Fund I, underscores the firm’s growing role in connecting global investors with high-quality UAE energy assets.

SOFAZ’s Broader Investment Strategy

SOFAZ, Azerbaijan’s sovereign wealth fund, manages approximately $60 billion in assets as of December 2024. The fund has been actively seeking opportunities to diversify its portfolio beyond traditional oil and gas revenues, focusing on resilient, income-generating infrastructure assets. This investment in AGPA aligns with SOFAZ’s goal of building a robust and diversified portfolio while deepening economic ties with the GCC region.

The partnership with Lunate Capital also reflects SOFAZ’s confidence in the UAE’s energy sector as a stable and lucrative investment destination. Posts on X echoed this sentiment, with SOFAZ’s official account stating, “SOFAZ’s USD 50 million investment aligns with our strategy to diversify our portfolio while deepening economic ties.”

A Milestone for UAE-Azerbaijan Economic Relations

The investment strengthens the growing economic relationship between Azerbaijan and the UAE, with both nations increasingly collaborating in the energy and investment sectors. ADNOC Gas Pipelines’ consistent operational performance and predictable income make it an attractive asset for institutional investors like SOFAZ, particularly in a volatile global energy market.

Murtaza Hussain, Managing Partner at Lunate, commented on the broader significance of the deal, saying, “ADNOC Gas Pipelines is a key asset within the UAE’s energy infrastructure system. We are pleased to strengthen our partnership with ADNOC through this investment and deliver on Lunate’s mandate to offer investors access to high-quality assets.”

Looking Ahead

This $50 million investment is expected to pave the way for further collaborations between SOFAZ, Lunate, and ADNOC, as Azerbaijan continues to expand its investment footprint in the GCC. The deal highlights the UAE’s position as a global hub for energy infrastructure investments and underscores the strategic importance of partnerships in driving sustainable economic growth.

For more information on SOFAZ’s investment strategies, visit their official website. For details on ADNOC’s operations and Lunate Capital’s investment opportunities, refer to their respective platforms.

Comments

Post a Comment

Popular posts from this blog

Image
Dubai’s DFSA Reports 22% Growth in First Half of 2024 The Dubai Financial Services Authority (DFSA) has announced a robust 22% growth in its financial sector for the first half of 2024, underscoring the continued strength and dynamism of Dubai’s financial services industry. This impressive growth highlights the resilience and expansion of the Dubai International Financial Centre (DIFC), a global financial hub. The DFSA’s report reveals that this growth is driven by increased business activity, expansion of financial services, and enhanced regulatory frameworks that foster a competitive and innovative environment. The growth encompasses various sectors within the financial services industry, including banking, asset management, insurance, and fintech. The DFSA has seen a significant uptick in new firms and investments, reflecting confidence in Dubai’s financial ecosystem and its role as a gateway for international business. “The 22% growth is a testament to the strength and adaptability...
Read more
Image
Emirates NBD's Acquisition of Emirates Islamic Bank (EIB) Emirates NBD, the largest bank in Dubai by assets, has launched a mandatory cash offer to acquire the remaining 0.11% of shares in Emirates Islamic Bank (EIB), a subsidiary that operates under the Emirates NBD Group. The bank has put forward an offer price of AED 11.95 per share, which values the total outstanding stake at approximately AED 69.88 million. This strategic acquisition is part of Emirates NBD’s ongoing efforts to consolidate its operations and streamline its business structure, further enhancing its operational efficiency. Following the successful completion of the transaction, Emirates NBD plans to integrate EIB fully, but EIB will continue to operate under its own brand name. The transaction is expected to result in the delisting of EIB’s shares from the Dubai Financial Market (DFM). Once the offer is completed, Emirates NBD will hold 100% ownership of Emirates Islamic Bank, thereby further strengthening it...
Read more
Image
Aramco Slashes $40 Billion in Dividends Amid Saudi Fiscal Pressures Saudi Aramco, the world’s most valuable oil company, has announced a major cut in its dividend payouts for 2025, signaling mounting financial pressure on the Kingdom as it presses ahead with its costly economic transformation plans. The oil giant plans to distribute $85.4 billion in total dividends this year, a significant drop from the $124.2 billion paid in 2024 — a reduction of nearly $40 billion. The move has sparked concerns about Saudi Arabia’s ability to finance its ambitious Vision 2030 agenda, which relies heavily on Aramco's profits to bankroll infrastructure and diversification projects. Performance-Linked Payouts Plunge 98% The sharpest decline came in the form of performance-linked dividends, which are set to fall from $43.1 billion in 2024 to just $900 million in 2025 — a staggering 98% decrease. The dividend cuts reflect a broader decline in Aramco’s financial performance. Net income dropped by 12%, ...
Read more