Saudi Arabian Oil Company (Aramco) and an international investor consortium, led by affiliates of BlackRock and Hassana, have closed the lease and leaseback deal previously announced on 6 December 2021
The consortium has acquired 49% stake in Aramco Gas Pipelines Company, a subsidiary of Aramco, for US$15.5bn. The consortium comprises leading institutional investors including, amongst others, Keppel Infrastructure Trust, Silk Road Fund and China Merchants Capital.
This long-term investment by the consortium represents further progress in Aramco’s portfolio optimisation programme and highlights the strong investment opportunities presented by Aramco’s significant infrastructure assets. It also underlines Aramco’s strong long-term outlook and the appeal of the kingdom of Saudi Arabia to leading institutional investors.
Under this arrangement, Aramco Gas Pipelines Company will receive a tariff payable by Aramco for the specified gas products that flow through the network, backed by minimum commitments on throughput. Aramco retains a 51% majority stake in Aramco Gas Pipeline Company, and also retains full ownership and operational control of the gas pipeline network. The transaction does not impose any restrictions on Aramco’s production volumes.
Aramco president and CEO Amin H Nasser said, “The participation of the consortium led by BlackRock and Hassana underlines the appeal of Aramco’s portfolio to leading global investors as Saudi Arabia’s economic transformation builds momentum, requiring a robust energy infrastructure and network that are vital to meet the needs of an expanding industrial sector.”
Abdulaziz M Al Gudaimi, Aramco senior vice-president of corporate development, said, “The gas infrastructure transaction with BlackRock and Hassana is a testament of the relationship with the global investors and emphasises gas as a key pillar to grow in domestic and international markets.”