Apollo Global Management and BP have announced a significant expansion of their strategic partnership, with Apollo-managed funds investing approximately $1 billion for a 25% non-controlling stake in BP Pipelines Ltd. This subsidiary holds BP's 12% interest in the Trans-Anatolian Natural Gas Pipeline (TANAP), a crucial component of the Southern Gas Corridor (SGC) pipeline system across Turkey.

This agreement, set to close in the second quarter of 2025, subject to regulatory and TANAP shareholder approvals, deepens the collaboration between the two entities, following their successful partnership on the Trans Adriatic Pipeline (TAP) in November 2024. TAP represents the final leg of the SGC, solidifying Apollo's growing presence in this vital European energy infrastructure.

TANAP, stretching approximately 1,800 kilometers across Türkiye, transports natural gas from the BP-operated Shah Deniz gas field in Azerbaijan to markets across Europe, including Italy and Greece. This pipeline plays a pivotal role in ensuring energy security and diversification for the continent.

The transaction allows BP to monetize a portion of its infrastructure assets, contributing to its $20 billion divestment and proceeds program, while maintaining a significant strategic interest. BP will retain a controlling shareholding in bp TANAP.

"We are pleased to extend our partnership with Apollo and to deepen our partnership in this key piece of energy infrastructure for Europe," said William Lin, BP executive vice president, gas & low carbon energy. "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."

Apollo's investment underscores the firm's commitment to deploying long-term capital in essential infrastructure assets. "We see significant potential with our scaled, long-term capital to partner with BP, in alignment with their strategic objectives," said Skardon Baker, Apollo Partner. "We are pleased by the highly successful partnership to date."

Leslie Mapondera, another Apollo Partner, added, "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."

The continued collaboration between BP and Apollo signifies a growing trend of energy companies partnering with private capital to optimize their portfolios and fund strategic initiatives. The TANAP investment highlights the increasing importance of the Southern Gas Corridor in supplying Europe with diverse and reliable energy sources. Both companies have signaled their intent to explore further opportunities for cooperation, including in infrastructure, gas, and low carbon energy assets.