Occurred Saudi Aramco Company A $15.5 billion leasing and leaseback deal that includes its gas pipeline network, with a consortium led by BlackRock Fixed Assets and Hassana Investment Company – the investment management arm of Saudi Arabia’s General Organization for Social Security – making it one of the world’s largest energy infrastructure deals.
The deal represents progress in Saudi Aramco’s asset improvement program, as it is the company’s second deal of its kind this year, after the completion of the infrastructure deal for Saudi Aramco’s crude oil pipeline network, last June.
Upon completion of the gas pipeline deal, Saudi Aramco will receive revenues of about $15.5 billion, which will enhance its financial position.
The transaction will generate additional value from the company’s diversified asset base, attract the interest of a wide range of investors around the world, and highlight attractive investment opportunities.
As part of the deal, the newly created Aramco Gas Supply Company will lease and lease back usage rights in Aramco’s gas pipeline network for a period of 20 years. In return, Aramco Gas Supply Company will receive a tariff paid by Aramco for gas products that flow through the network, and this tariff is linked to a minimum gas flow.
Saudi Aramco will retain a majority stake of 51% in Aramco Gas Supply Company, and sell 49% of the stake to investors led by BlackRock and Hasana Investment Company.
Saudi Aramco will retain full ownership of the pipeline network with full operational control over it, and this transaction will not impose any restrictions on the company in terms of production quantities.
Commenting on the signing of this deal, Saudi Aramco President and Chief Executive Officer, Amin bin Hassan Al-Nasser, said: “This deal is one of the main elements in Aramco’s strategy to develop a larger and stronger business system in the gas field, which is one of the major growth drivers in the company’s business. It contributes to Strengthening our financial position with a positive impact on Aramco’s ability to create long-term value for shareholders.It is very important to emphasize that this transaction supports our track record of attracting major global investors to the Kingdom, which is witnessing major transformations in various sectors, and Saudi Aramco is an essential part of enabling these transformations. “.
“If we look to the future in the next 20-30 years, and move towards zero neutrality, we expect gas to play a major role in the global transition to a more sustainable energy future, and our partners will benefit from a deal linked to world-class gas infrastructure assets,” Nasser added.
The announcement follows a $12.4 billion lease and leaseback deal concluded last June with a consortium led by EIG and international partners, which included Saudi Aramco’s crude oil pipeline network.
The gas pipeline transaction is expected to be completed soon, subject to the fulfillment of customary conditions for such transactions, including the required merger controls and related approvals and permits.
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