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

by Mike Robinson

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© Reuters. FILE PHOTO – General view of Aramco tank and oil pipeline at Saudi Aramco’s Ras Tanura oil refinry and terminal in Saudi Arabia, May 21 2018. REUTERS/Ahmed Jadallah/File photo

DUBAI (Reuters). Saudi Aramco (SE:), announced Monday that it signed $15.5 billion in lease-and–leaseback agreements for its pipeline network, with a consortium headed by BlackRock and Hassana Investment Co.

Aramco Gas Pipelines Co, which is a new subsidiary of the state energy company, will lease rights to the gas pipeline network. It then leases them back to Aramco over a period of 20 years.

Aramco Gas Pipelines Co, in return for a tariff, will be paid by Aramco on the products of the pipeline network. This will also include minimum commitments to throughput.

Aramco will own a majority (51%) stake in Aramco Gas Pipeline Company, and will sell 49% to investors led BlackRock and Hassana. This is the Asset Management arm of the General Organization for Social Insurance.

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