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KKR invests in ADNOC gas pipelines, boosting Middle East infrastructure

Oil and Gas

BusinessHonor - KKR Invests in ADNOC Pipelines

Business Honor
01 October, 2025

KKR acquires stake in ADNOC gas pipelines, expanding Middle East energy infrastructure investments.

In a major step toward its growth into the Middle East energy market, international investment firm KKR has acquired a minority position in the gas pipeline infrastructure owned by Abu Dhabi National Oil Company (ADNOC). The investment was made through KKR's managed accounts, in line with long-term capital strategies, even though no financial information was revealed.

KKR's 2019 investment in ADNOC's oil pipeline network was a groundbreaking step for a foreign asset management in Gulf energy infrastructure, and this agreement builds on that investment. Following their collaboration with BlackRock on that transaction, KKR and BlackRock subsequently sold their share to Lunate, a company based in Abu Dhabi. However, ADNOC maintains complete ownership and management of the pipelines, guaranteeing command over the infrastructure.

In order to draw in institutional capital while maintaining operational control, the United Arab Emirates and other Gulf nations like Saudi Arabia and Bahrain have increasingly resorted to joint ventures with overseas investors. These agreements help these countries to expand their gas and oil infrastructure without giving up management control.

In a similar vein, Saudi Aramco and a group led by Global Infrastructure Partners, which includes BlackRock, inked a $11 billion lease and leaseback arrangement in August for its Jafurah gas processing facilities. According to reports, Kuwait is also thinking about leasing and leasing back its crude oil pipelines in order to attract investment.

In addition to managing more than $90 billion in infrastructure assets worldwide, KKR has been extending its footprint in the Middle East. To encourage regional development, it named General David Petraeus chairman of the Middle East earlier this year. Along with energy investments, KKR committed to invest more than $5 billion to increase data center capacity in the region by purchasing a share in Gulf Data Hub which is a company based in Dubai. This most recent investment shows the growing international interest in Gulf energy infrastructure and the value of planned alliances in promotion of the oil and gas industry's long lasting growth.