Saudi Aramco, BlackRock and others reached a $15.5 billion natural gas pipeline network transaction

Saudi Aramco (ARMCO) agreed to sell 49% of its natural gas pipeline network to a consortium led by BlackRock (BLK.US) and Saudi Arabia’s Hassana Investment Company for US$15.5 billion to attract foreign investors.

Saudi Aramco said that the two parties will establish a new subsidiary, Aramco Gas pipeline Co., which will lease the right to use the Saudi Aramco gas pipeline network and lease it back to Saudi Aramco after the 20-year lease expires.

In return, Aramco Gas Pipelines will receive tariffs paid by Saudi Aramco for natural gas products flowing through the pipeline network, backed by a minimum throughput commitment.

Article excerpted from the US Stock Research Agency