Saudi Aramco, BlackRock Sign $15.5bn Gas Pipeline Deal

Saudi Aramco, BlackRock Sign $15.5bn Gas Pipeline Deal

Oil tanks at an oil processing facility of Saudi Aramco at the Abqaiq oil field. (AFP)

Saudi Aramco said it has signed a $15.5 billion lease and leaseback agreement for its gas pipeline network with a consortium led by BlackRock Real Assets and Hassana Investment Company in its second major infrastructure deal this year.

Under the new deal, a newly formed 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, the Saudi oil firm said in a statement.

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

Aramco will hold a 51 percent stake in Aramco Gas Pipeline Company and sell a 49 percent stake to investors led by BlackRock and Hassana, a Saudi state-backed investment management firm.

"With gas expected to play a key role in the global transition to a more sustainable energy future, our partners will benefit from a deal tied to a world-class gas infrastructure asset," Aramco president and CEO Amin Nasser said in a statement.

"BlackRock is pleased to work with Saudi Aramco and Hassana on this