Aramco could get $17bn from sale of gas pipelines: press

Saudi Aramco could realise at least $17bn by selling off parts of its interests in gas pipelines, sources familiar with the issue told the Reuters news service August 16. The company raised $12.4bn through the sale of its stake in oil pipelines in July.

Reuters reported the company is working with J P Morgan and Goldman Sachs on the sale, which could begin in a few weeks. Aramco in July dropped Morgan Stanley as the lead advisor for the sale of a stake in its natural gas pipeline network.

J P Morgan notably served as a lead arranger for a loan that supported the purchase in June of a 49% stake in Aramco's oil pipeline network by a consortium led by US-based EIG Global Energy Partners.

An economic plan dubbed Saudi Vision 2030 aims to diversify the economy and cut its dependency on oil. On August 9, the company said that low-carbon fuels were part of “a number of strategic programmes.”

Aramco has promised to pay $75bn in annual dividends despite the damage from the pandemic-triggered collapse in oil prices last year. Its net income was down 44% last year at $49bn, on weaker prices and lower production.