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December 7, 2021

Saudi Aramco signs $15.5bn gas pipeline deal

This is Saudi Aramco’s second such infrastructure transaction in 2021.

By Aninda Chakraborty

Saudi Aramco has entered into a $15.5bn lease and leaseback deal for its gas pipeline network, further advancing its asset optimisation programme.

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2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
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The company signed the deal with a consortium led by BlackRock Real Assets and Hassana Investment Company, the investment management arm of the state-backed General Organization for Social Insurance (GOSI).

As agreed, the newly formed subsidiary Aramco Gas Pipelines Company will lease the usage rights in the company’s gas pipelines network and lease them back to Aramco for a 20-year period.

Aramco will pay a tariff to the Aramco Gas Pipelines Company for the gas products that will be transported through the network, backed by minimum commitments on throughput.

Aramco will continue to hold full ownership of its gas pipeline network.

It will also hold a 51% stake in Aramco Gas Pipelines Company. The remaining 49% will be owned by the investors led by BlackRock and Hassana.

The completion of the transaction is subject to customary closing conditions, including any required merger control and related approvals.

Once complete, Aramco will receive upfront proceeds of $15.5bn, further increasing its balance sheet.

This is the company’s second such infrastructure transaction this year. In June, Aramco closed a $12.4bn lease and leaseback transaction that involved its stabilised crude oil pipeline network.

Commenting on the latest deal, Aramco Corporate Development senior vice-president Abdulaziz M. Al Gudaimi said: “Our gas pipeline assets are critical and growing, and highly integrated with the rest of Aramco’s oil and gas facilities.

“We are pleased that we are concluding the second transaction, seeking long term partners who understand and appreciate the industry.

“This transaction represents the largest energy infrastructure deal in the region to date and exemplifies Aramco’s unique positioning as a partner for prominent global institutional investors.”

Related Companies

Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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