BP p.l.c ( BP ). inked a deal under which Apollo Global Management, Inc. ( APO ) managed funds will acquire a non-controlling stake in BP Pipelines TAP Limited for around $1 billion.

The bp subsidiary, bp Pipelines TAP Limited, holds a 20% share in Trans Adriatic Pipeline AG (TAP). Trans Adriatic Pipeline AG runs a key 880-kilometer segment of the Southern Gas Corridor, transporting gas from BP’s Shah Deniz field to Europe.

BP and Apollo will also explore additional investments in gas and low-carbon energy. The transaction will help BP meet its 2024 divestment goal of $2 billion – $3 billion and is expected to close in the fourth quarter of 2024, pending regulatory and partner approvals. Post-deal closure, BP will retain its position as the controlling shareholder of bp Pipelines TAP.

William Lin, bp EVP gas and low carbon energy said, “We are very pleased to come together with Apollo on this key piece of Europe’s energy infrastructure. Importantly, while bringing in a new investor, this does not diminish bp’s role in a strategic asset for our Azerbaijan gas business. We see great potential in building innovative arrangements such as this and look forward to continuing to explore further opportunities with Apollo through growing this collaborative relationship.”

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Skardon Baker, Apollo Partner said, “We are pleased to partner with bp on an agreement that will provide our investors with long-term exposure to an industry-leading infrastructure asset with a stable cash flow profile, while allowing bp to meet its objectives of retaining control and executing on its capital efficiency strategy.”

Investors can gain exposure to the stock via Direxion Hydrogen ETF (ARCA: HJEN) and First Trust Exchange-Traded Fund IV FT Energy Income Partners Strategy ETF (ARCA: EIPX).

Price Action: BP shares are up 0.79% at $32.09 premarket at the last check Monday.

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