<p>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.</p>.<p>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.</p>.<p>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.</p>.<p><strong>Read more: <a href="https://www.deccanherald.com/business/business-news/aramco-in-advanced-talks-on-up-to-25-billion-reliance-deal-1020248.html" target="_blank">Aramco in advanced talks on up to $25 billion Reliance deal </a></strong></p>.<p>Saudi Arabia is the world's sixth largest gas market, according to Aramco, whose Master Gas System (MGS) derives value from a range of gas deposits and helps deliver it to consumers.</p>.<p>"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.</p>.<p>The source said many industries will shift to gas under the economic Vision 2030, meaning domestic gas demand will rise.</p>.<p>Aramco is working with JPMorgan and Goldman Sachs on the deal to tap potential buyers, sources have said.</p>.<p>The companies tapped include the ones who took part in the stake sale process for Abu Dhabi National Oil Co's gas pipelines, which was bought by a consortium of investors including Global Infrastructure Partners (GIP), Brookfield, Singapore sovereign wealth fund GIC and European gas infrastructure owner and operator SNAM.</p>.<p>Aramco did not immediately respond to a <em>Reuters</em> request for comment, while JPMorgan and Goldman declined to comment.</p>.<p>Brookfield and SNAM declined to comment. GIP did not immediately respond to a request for comment.</p>.<p>Other potential bidders showing interest in the Aramco sales process include China's Silk Road, Chinese state-backed investment fund CNIC Corp, South Korea's sovereign wealth fund Korean Investment Corp (KIC) and NH Investment & Securities, sources said.</p>.<p>KIC declined to comment, while the other companies did not respond to a <em>Reuters</em> request for comment.</p>.<p>Aramco, similar to Abu Dhabi National Oil Co (ADNOC), used a lease and lease-back agreement to sell a 49% stake of newly formed Aramco Oil Pipelines Co to the buyer and rights to 25 years of tariff payments for oil carried on its pipelines. </p>
<p>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.</p>.<p>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.</p>.<p>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.</p>.<p><strong>Read more: <a href="https://www.deccanherald.com/business/business-news/aramco-in-advanced-talks-on-up-to-25-billion-reliance-deal-1020248.html" target="_blank">Aramco in advanced talks on up to $25 billion Reliance deal </a></strong></p>.<p>Saudi Arabia is the world's sixth largest gas market, according to Aramco, whose Master Gas System (MGS) derives value from a range of gas deposits and helps deliver it to consumers.</p>.<p>"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.</p>.<p>The source said many industries will shift to gas under the economic Vision 2030, meaning domestic gas demand will rise.</p>.<p>Aramco is working with JPMorgan and Goldman Sachs on the deal to tap potential buyers, sources have said.</p>.<p>The companies tapped include the ones who took part in the stake sale process for Abu Dhabi National Oil Co's gas pipelines, which was bought by a consortium of investors including Global Infrastructure Partners (GIP), Brookfield, Singapore sovereign wealth fund GIC and European gas infrastructure owner and operator SNAM.</p>.<p>Aramco did not immediately respond to a <em>Reuters</em> request for comment, while JPMorgan and Goldman declined to comment.</p>.<p>Brookfield and SNAM declined to comment. GIP did not immediately respond to a request for comment.</p>.<p>Other potential bidders showing interest in the Aramco sales process include China's Silk Road, Chinese state-backed investment fund CNIC Corp, South Korea's sovereign wealth fund Korean Investment Corp (KIC) and NH Investment & Securities, sources said.</p>.<p>KIC declined to comment, while the other companies did not respond to a <em>Reuters</em> request for comment.</p>.<p>Aramco, similar to Abu Dhabi National Oil Co (ADNOC), used a lease and lease-back agreement to sell a 49% stake of newly formed Aramco Oil Pipelines Co to the buyer and rights to 25 years of tariff payments for oil carried on its pipelines. </p>