Keppel Infrastructure Trust (KIT) has invested US$250m (€219m) in the Aramco Gas Pipelines Company.
The SGX-listed infrastructure vehicle is investing into a consortium led by BlackRock Real Assets and Hassana Investment Company, which is buying a stake in the pipeline company with a 20-year lease usage rights in Aramco’s gas pipeline network in Saudi Arabia.
BlackRock and state-backed Saudi asset manager Hassana co-led a US$15.5bn deal to buy a 49% stake in Aramco’s gas pipeline project last December. The Saudi Arabian oil company continues to own 51% of the pipeline company.
Jopy Chiang, CEO of the KIT trustee-manager, said: “As the world pivots towards a more sustainable energy future, gas is expected to continue to play a key role in the global energy transition.
“The strategic addition of this gas pipeline business will allow KIT to diversify its income base geographically, as well as to provide greater stability in the long term by replenishing the portfolio through the addition of another resilient business.”
Chiang said the acquisition was expected to provide long-term predictable cashflows to KIT through a strong and growing business that was underpinned by one of the world’s largest reserves of natural gas.
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