Saudi Aramco closes $15.5bn gas pipeline deal

Saudi Arabia’s Aramco, the world’s largest oil company, announced yesterday that a consortium of international investors has acquired a stake in its natural gas pipeline for $15.5 billion.

An international investor consortium led by BlackRock acquired a 49 per cent stake in Aramco Gas Pipelines Co. in a lease and leaseback deal in December, Aramco said in a statement.

The consortium also comprised Keppel Infrastructure Trust, Silk Road Fund, China Merchants Capital, and Saudi Arabia’s state-owned Hassana Investment Co.

“As part of the transaction, first announced in December 2021, Aramco Gas Pipelines Company and Aramco entered into a 20-year lease and leaseback arrangement in connection with Aramco’s gas pipeline network,” the statement added.

“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,” it added.

Aramco retains a 51 per cent majority stake in Aramco Gas Pipeline Company, and also retains full ownership and operational control of the gas pipeline network.

The announcement follows the closing of a $12.4 billion infrastructure transaction in connection with Aramco’s stabilised crude oil pipeline network in June 2021.

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