Salem Radio Network News Thursday, January 20, 2022

Business

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

DUBAI (Reuters) – Saudi Aramco said on Monday 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 state-backed Hassana Investment Co.

As part of the transaction, a newly-formed subsidiary, Aramco Gas Pipelines Co, will lease usage rights in the state energy firm’s gas pipelines network and lease them back to Aramco for a 20-year period, it said.

In return, Aramco Gas Pipelines Co will receive a tariff payable by Aramco for the gas products that will flow through the network, backed by minimum commitments on throughput.

Aramco will hold a 51% majority stake in Aramco Gas Pipeline Company and sell a 49% stake to investors led by BlackRock and Hassana, which is the asset management arm of the General Organization for Social Insurance (GOSI).

(Reporting by Saeed Azhar)

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