Riyadh: Saudi Aramco says it has signed a lease contract and lease contract of $ 15.5 billion for gas pipelines with a consortium led by tangible assets and investment company BlackRock deal Hassana in this year’s second major infrastructure.
The agreement signed on Monday highlighted how Aramco – Cash Cash Empire – seeks to memonetasikan once untouchable assets to generate income for the Saudi government for speeding up efforts to diversify the oil-dependent economy.
In June, Aramco sold a 49 percent stake in the oil pipeline business to a consortium led by EIG Global Energy Partners is based in the US amounted to $ 12.4 billion.
Under the New Deal, a newly formed subsidiary, Aramco Gas Pipelines company, will lease the right to use in gas pipelines Aramco and rent them back to Aramco for a period of 20 years, the Saudi oil company said in a statement.
In return, the gas pipeline company Aramco will receive tariff payable by Aramco for the product gas flowing through the network, supported by a minimum throughput commitment.
Aramco will hold a 51 percent stake in Aramco Gas Pipeline Company and sold 49 percent stake to investors led by Blackrock and Hassana, an investment management company backed by the Saudi state.
“With gas expected to play an important role in the future global transition to a more sustainable energy, our partners will benefit from the agreement relating to the gas infrastructure of world-class assets,” said Aramco president and CEO Nasser Amin said in a statement.
“BlackRock is happy to work with Saudi Aramco and Hassana about this landmark transaction for the infrastructure of Saudi Arabia,” said Chairman and CEO Larry Fink of Blackrock.
“Aramco and Saudi Arabia to take steps that are meaningful and forward-looking to transition the Saudi economy toward renewable energy, clean hydrogen, and the future of zero.” Aramco, the largest oil producer in the world, has pledged to achieve zero net carbon emissions in its operations by 2050.
Saudi Arabia, one of the biggest polluters in the world as well as top oil exporter, also pledged to achieve zero net carbon emissions in the year 2060.
Long regarded as the “crown jewel” kingdom, Aramco and its assets were once strictly under government control and is forbidden to foreign investment.
But with the rise of De Facto Rule Crown Prince Mohammed bin Salman, who pushed to implement the reform program “Vision 2030” it, the kingdom has shown readiness to provide control.
Aramco sells a piece of its shares on the Saudi stock exchange in December 2019, generating $ 29.4 billion in the largest initial public offering in the world.