KKR Invests in ADNOC Gas Pipelines, Signaling Shift in Regional Energy Strategy
Abu Dhabi, UAE – Global investment firm KKR has acquired a minority stake in ADNOC’s gas pipeline assets, a deal reflecting a growing trend of national energy companies attracting foreign capital while retaining control of critical infrastructure. Teh agreement, announced today, will see KKR invest through its managed accounts in the network connecting ADNOC’s production stations to local gas purchasers.
This move underscores a strategic shift within the Middle East’s energy sector, as regional giants like ADNOC seek to unlock value and accelerate growth by partnering with international investors. While the financial terms of the deal – including the size and value of the stake – remain undisclosed, the investment is aligned with KKR’s long-term capital allocation strategy, with over $90 billion in assets under management. ADNOC will maintain both ownership and operational management of the gas pipeline network.
The transaction follows a similar pattern established by Saudi Aramco last august, when it secured an $11 billion agreement to lease and lease-back gas processing facilities in the Jafoura field to a consortium led by BlackRock’s Global Infrastructure Partners. These partnerships allow national oil companies to monetize assets without relinquishing control, freeing up capital for further investment in core operations and diversification.
KKR has been actively expanding its presence in the Middle East, recently appointing General David Petraeus as Chairman of its Regional Board of Directors and establishing a dedicated investment team headed by Julian Parayre-Redi. Beyond energy, the firm demonstrated its regional commitment through an investment in Galv Data Hep, a major self-reliant data centre platform based in Dubai, signaling a broader diversification strategy.
