Aramco closes US$15.5b BlackRock-led gas pipeline deal

[RIYADH] Saudi Aramco closed a deal to sell a stake in its natural-gas pipelines for US$15.5 billion and entered into a pact with BlackRock to explore low carbon energy projects.

An investor group, led by BlackRock, acquired a 49 per cent stake in Aramco Gas Pipelines in a lease and leaseback deal in December, according to a statement. The consortium also comprised Keppel Infrastructure Trust, Silk Road Fund, China Merchants Capital, and Saudi Arabia's state-owned Hassana Investment.

The 20-year arrangement "represents further progress in Aramco's portfolio optimisation programme and highlights the strong investment opportunities presented by Aramco's significant infrastructure assets," according to the statement.

The deal is part of Saudi Arabia's drive to sell assets and use the money to fund new industries from artificial intelligence to electric vehicles, while also increasing output of both oil and gas. In a similarly-structured transaction in April, Aramco sold a US$12.4 billion stake related to its oil pipelines to investors including Washington-based EIG. BLOOMBERG