Saudi Aramco, the state-owned oil company and the world’s biggest, announced that 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 the state-backed Hassana Investment Co. The deal waws signed on Monday and announced by the company late on Monday night.
A new subsidiary, Aramco Gas Pipelines Company, will lease usage rights in Aramco’s gas pipeline network and lease them back to Aramco for a 20-year period under the new deal, Saudi Aramco said in a statement. Aramco will hold a 51 % stake in the subsidiary, BlackRock and Hassana will hold a 49% stake. .
It is the second infrastructure deal for the state-owned company in the last year. In June, Aramco sold a 49% stake in its oil pipeline business to a consortium led by US-based EIG Global Energy Partners for $12.4 billion.
The agreement falls in line with Crown Prince Mohammed bin Salman’s “Vision 2030” reform program, under which the kingdom is working to diversify its economy. Aramco has said it plans to achieve net zero carbon emissions in its operations by 2050.