December 3 – Global private capital investments in oil and gas infrastructure are accelerating, according to Moneta Markets. Investors are increasingly targeting pipeline and storage assets, which offer high returns, long lifespans, and steady cash flows for major energy companies while allowing them to retain operational control. Recent high-profile deals involving Abu Dhabi National Oil Company (ADNOC), Saudi Aramco, and Bahrain’s Bapco Energies signal a broader trend extending to international energy giants like BP and Shell.
The world’s largest private equity funds are investing in Middle Eastern national oil companies’ infrastructure assets, facilitated by Saudi Arabia and the UAE gradually opening their pipeline networks to foreign capital. Moneta Markets notes that private capital is now eyeing infrastructure deals with global oil majors to fund reinvestment in oil and gas production. With oil prices declining and public market investors turning cautious, private capital has emerged as a key option for energy giants divesting pipeline and storage assets. This model helps sustain dividends, stock buybacks, and production capacity investments even at $60/barrel oil.
Investor appetite for energy infrastructure remains strong. ExxonMobil, BP, TotalEnergies, and Italy’s Eni have reportedly been approached by private equity firms to monetize pipeline and storage assets—providing alternative financing outside equity markets. Notable 2023 transactions include Apollo’s $1 billion acquisition of a 25% non-controlling stake in BP’s TANAP pipeline subsidiary (with BP retaining control) and Shell’s sale of a 16.125% stake in Colonial Pipeline to Brookfield.
Middle Eastern infrastructure deals are shaping global markets. In 2020, ADNOC sold 49% of its gas pipelines to investors including GIP and Brookfield for $20.7 billion. This year, KKR reinvested in ADNOC’s gas pipeline minority stake. Saudi Aramco’s $11 billion leaseback deal for its Jafurah gas processing facility supports a 60% gas capacity expansion by 2030. Moneta Markets highlights that such deals provide stable funding for energy firms and reliable long-term yields for infrastructure investors. With Shell and BP joining the trend, private capital is poised to remain a major driver of energy infrastructure investment.
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