Saudi Aramco announced on its official website on Wednesday (February 23) that the company had reached a deal with the global investor consortium: the global investor consortium bought 49% of Aramco gas pipelines company, a subsidiary of Saudi Aramco, for us $15.5 billion.
According to the announcement, Saudi Aramco retained 51% of the majority equity of Aramco natural gas pipeline company and retained the full ownership and operation control of the natural gas pipeline network. The company also reached an agreement with BlackRock to continue to explore low-carbon energy projects.
(source: Saudi Aramco official website)
The deal is part of Saudi Arabia’s push to sell assets and use the funds to fund everything from artificial intelligence to electric vehicles Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) . Amin h. Nasser, President and CEO of Saudi Aramco, said, “this agreement is our second landmark infrastructure transaction in less than a year. It is also another important step in our long-term value creation strategy.”
In a similar deal last April, Saudi Aramco reached a $12.4 billion deal with consortium investors led by eig global energy partners to sell shares related to oil pipelines.
Nasser said, “the participation of a consortium led by BlackRock and Saudi Arabia’s hassana investment company highlights the attractiveness of Saudi Aramco’s portfolio to the world’s leading investors. Saudi Arabia’s strong economic transformation requires a strong energy infrastructure and network, which is essential to meet the needs of the expanding industrial sector.”
For BlackRock, which has been facing the pressure of decarbonization investment, the natural gas pipeline with Saudi Aramco will make the company’s low-carbon strategy more recognized. Larry Fink, chairman and CEO of the company, said, “we are pleased to jointly develop low-carbon energy infrastructure, complete this landmark transaction and deepen our partnership with Saudi Aramco.”
“Achieving a net zero world will not happen overnight. It requires us to gradually change the energy structure to achieve a green energy future. A bold and visionary old brand enterprise like Saudi Aramco has the technology and capital to play a key role in this transformation, and we look forward to future cooperation,” Fink said
