In a significant energy sector move, Apollo Global Management has agreed to acquire a 25% noncontrolling stake in a BP entity tied to the Trans-Anatolian Natural Gas Pipeline (TANAP) for $1 billion, the companies announced Friday.

The deal marks a major milestone in Apollo’s growing footprint in global energy infrastructure, while allowing BP to unlock capital without relinquishing control of a key asset.

Strategic Energy Shift: BP and Apollo Deepen Ties

The transaction, expected to close in Q2 2025, involves BP Pipelines Ltd., which holds BP’s 12% stake in TANAP—a vital 1,100-mile natural gas pipeline that runs across Turkey, serving as the central artery of the Southern Gas Corridor (SGC).

Apollo’s "patient capital" strategy targets long-term, stable returns in energy infrastructure, and this latest acquisition reinforces the firm’s commitment to European energy security.

"This investment highlights Apollo’s ability to provide capital for high-quality infrastructure opportunities in Europe," said Apollo partner Leslie Mapondera.

A Critical Link in Europe’s Energy Security

TANAP forms the backbone of the Southern Gas Corridor, a crucial pipeline system that delivers Azerbaijani natural gas from the Shah Deniz field to Italy, Greece, and other European nations.

The acquisition builds on Apollo and BP’s previous deal in November involving the Trans Adriatic Pipeline (TAP)—the final segment of the SGC.

BP’s $20B Divestment Plan Gains Momentum

For BP, the deal aligns with its $20 billion divestment strategy, allowing it to monetize assets while maintaining operational influence.

"This transaction unlocks capital from our global portfolio while keeping our strategic role in Azerbaijan gas exports to Europe," said William Lin, BP’s EVP of gas and low carbon energy.

He hinted at future collaborations, stating that BP and Apollo will explore additional strategic partnerships.

The agreement is subject to regulatory and shareholder approvals within TANAP.