BlackRock-led consortium signs deal for Saudi Aramco's gas pipelines

Reuters · 12/06/2021 19:00
BlackRock-led consortium signs deal for Saudi Aramco's gas pipelines

- Saudi Aramco 2222.SE said on Monday it has signed a $15.5 billion lease-and-leaseback deal for its gas pipeline network with a consortium led by BlackRock Real Assets and state-backed Hassana Investment Co.

As part of the transaction, a newly-formed subsidiary, Aramco Gas Pipelines Co, will lease usage rights in the state energy firm's gas pipelines network and lease them back to Aramco for a 20-year period, it said.

In return, Aramco Gas Pipelines Co will receive a tariff payable by Aramco for the gas products that will flow through the network, backed by minimum commitments on throughput.

Aramco will hold a 51% majority stake in Aramco Gas Pipeline Company and sell a 49% stake to investors led by BlackRock and Hassana, which is the asset management arm of the General Organization for Social Insurance (GOSI).



(Reporting by Saeed Azhar)

((Saeed.Azhar@thomsonreuters.com; +971 44536787; Reuters Messaging: saeed.azhar.reuters.com@reuters.net))