Apollo to partner with bp on TANAP gas pipeline
- Apollo Funds invest ~$1 billion for non-controlling shareholding in BP Pipelines (TANAP), which holds bp’s 12% interest in the Trans-Anatolian natural gas pipeline (TANAP), part of the Southern Gas Corridor (SGC) pipeline system.
- New agreement follows from Apollo and bp partnering in 2024 on the Trans Adriatic Pipeline (TAP), the final section of the SGC, deepening Apollo’s exposure to this world class energy asset.
- Agreement enables bp to realise value and unlock capital from infrastructure, while retaining strategic governance rights in the pipeline joint venture.
bp and Apollo (NYSE: APO) today announced that they have reached agreements for Apollo-managed funds to purchase a 25% non-controlling stake in BP Pipelines (TANAP) Ltd – bp TANAP – the bp subsidiary that holds bp’s 12% interest in TANAP, owner and operator of the pipeline that carries natural gas from Azerbaijan across Türkiye.
Under the agreement, Apollo funds will purchase the non-controlling shareholding in bp TANAP for a consideration of approximately $1.0 billion. Proceeds arising from this transaction will contribute towards bp’s programme for $20 billion in divestment and other proceeds.
While the deal enables bp to monetise its interest in TANAP, bp will remain the controlling shareholder of bp TANAP and retain a long-term commercial and strategic interest, including governance rights, in the pipeline - a vital part of the gas value chain for the bp-operated Shah Deniz gas field in Azerbaijan.
The transaction is anticipated to close in 2Q 2025, subject to regulatory and TANAP shareholders approvals.
“We are pleased to extend our partnership with Apollo and to deepen our partnership in this key piece of energy infrastructure for Europe."
William Lin, bp executive vice president, gas & low carbon energy
TANAP, running for approximately 1,800km across Türkiye, is the central section of the SGC pipeline system. The SGC transports gas from the bp-operated Shah Deniz gas field in the Azerbaijan sector of the Caspian Sea to markets in Europe, including Italy and Greece. In November 2024 Apollo and bp completed their previous agreement for Apollo to partner with bp on TAP - the final leg of the SGC.
bp and Apollo continue to explore opportunities for further cooperation, including in infrastructure, gas and low carbon energy assets.
William Lin, bp executive vice president, gas & low carbon energy said: “We are pleased to extend our partnership with Apollo and to deepen our partnership in this key piece of energy infrastructure for Europe. This unlocks capital from our global portfolio while retaining our role in this strategic asset for bringing Azerbaijan gas to Europe. bp and Apollo will continue to explore further strategic cooperation and mutually beneficial opportunities.”
Skardon Baker, Apollo Partner, said: “We see significant potential with our scaled, long-term capital to partner with bp, in alignment with their strategic objectives. We are pleased by the highly successful partnership to date.”
Leslie Mapondera, Apollo Partner, said: “We value the opportunity for our funds to further partner with bp on this critical European infrastructure asset. This investment underscores the relevance of Apollo’s capital for high quality scaled infrastructure opportunities in Europe."
About Apollo
Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade credit to private equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of December 31, 2024, Apollo had approximately $751 billion of assets under management. To learn more, please visit www.apollo.com.
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