Saudi Aramco aims to raise $17 bln from gas pipeline deal: report

Logo of Saudi Aramco

Saudi Aramco is looking to raise at least $17 billion from the sale of a significant minority stake in its gas pipelines, Reuters reported, citing sources.

Potential bidders, including North American private equity and infrastructure funds, as well as state-backed funds in China and South Korea, have been approached by Aramco through its advisors before a formal sale process kicks off in the next few weeks.

The deal size may include $3.5 billion of equity and the remainder will be funded by bank debt, one source said, while another source said the transaction size could top $20 billion.

“The gas deal is about the long-term view of gas utilisation and consumption in Saudi Arabia. Many industries will shift to gas under Vision 2030, meaning domestic gas demand will rise,” said one source familiar with deal, explaining why the gas deal may generate higher proceeds.

According to data compiled by Argaam, Bloomberg reported in July that Saudi Aramco selected JP Morgan and Goldman Sachs to advise on the potential sale of a stake in the gas pipeline.

Aramco recently concluded a deal with a consortium, led by EIG, to achieve the optimum value of its assets through a lease and leaseback agreement related to the Concentrated Crude Oil pipeline network, and the deal was completed at a value of $12.4 billion.