Aramco closes $15.5bn gas pipeline deal

 Saudi national oil company Saudi Aramco announced on February 23 it had closed a $15.5bn lease and leaseback deal relating to the country's national gas network.

Under the deal, announced in December, a consortium that includes BlackRock, Hassana, Keppel Infrastructure Trust, Silk Road Fund and China Merchants Capital will take a 49% stake in Aramco Gas Pipelines Co. Aramco Gas Pipelines will be paid a tariff by Aramco for gas flow, supported by minimal commitments on throughput. The national oil company will retain a 51% interest in the company, as well as full ownership and operational control of the pipelines.

Aramco is looking to raise capital for new investments by unlocking value at its infrastructure assets. The latest deal follows a similar, $12.4bn deal that Aramco closed for its oil pipeline network in June last year with BlackRock, Brookfield Asset Management, EIG and others.