#Saudi Aramco aims to raise at least $17 billion from gas pipeline -sources | Reuters

Saudi Aramco aims to raise at least $17 billion from gas pipeline -sources | Reuters

Saudi Aramco is looking to raise at least $17 billion from the sale of a significant minority stake in its gas pipelines, higher than the $12.4 billion raised from its oil pipeline deal, sources familiar with the matter said on Monday.

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, they said.

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.

Saudi Arabia is the world’s sixth largest gas market,according to Aramco, whose Master Gas System (MGS) derives valuefrom a range of gas deposits and helps deliver it to consumers.

“The gas deal is about the long-term view of gas utilisation and consumption in Saudi Arabia,” said one source familiar with deal, explaining why the gas deal may generate higher proceeds.