Global private equity firm KKR has strengthened its partnership with the Abu Dhabi National Oil Company (ADNOC) by acquiring a minority stake in ADNOC Gas Pipeline Assets.
The ADNOC subsidiary operates 38 gas pipelines and two export terminals across the United Arab Emirates.
KKR did not disclose the value of the transaction.
Building on a Previous Partnership
This deal follows ADNOC’s 2019 oil pipelines agreement with KKR and BlackRock, which opened the door for greater foreign direct investment into the region’s energy infrastructure.
“This investment reflects KKR’s commitment to expand partnerships and investment across the Middle East,” said David Petraeus, partner at KKR and chairman of the KKR Global Institute and KKR Middle East.
“The region’s strong fundamentals, bold vision, and focused leadership offer increasingly attractive opportunities for global investors.”
Leadership and Strategy in the Region
Earlier this year, KKR appointed Petraeus, who joined the firm in 2013 and previously served as CIA Director, as chair of its Middle East operations.
It also launched a dedicated investment team led by Julian Barratt-Due to accelerate growth in the region.
The transaction marks another milestone in KKR’s expansion in the Middle East.
Recently, the firm acquired a stake in Dubai-based Gulf Data Hub, committing more than $5 billion alongside partners to fund the expansion of the data center operator’s network.
ADNOC Retains Control of Pipeline Network
The ADNOC gas pipeline network links the company’s upstream assets to domestic off-takers across the UAE.
It remains fully owned and operated by ADNOC, which retains control despite KKR’s minority stake.
KKR acquired its interest through managed accounts structured to yield long-term revenue, the company said.
This approach allows KKR to benefit from stable cash flows while supporting ADNOC’s infrastructure strategy.
Long-Term Commitment to Infrastructure
KKR’s move underscores its growing presence in the Middle East, where it has operated for more than 16 years with offices in the UAE and Saudi Arabia.
Globally, the firm now manages more than $90 billion in infrastructure assets since launching its infrastructure strategy in 2008, according to information on its website.
By investing in ADNOC Gas Pipeline Assets, KKR deepens its exposure to the region’s critical energy infrastructure and signals continued interest in long-term partnerships with Middle Eastern state-owned enterprises.