Page 6 - MEOG Week 38

MEOG PIPELINES & TRANSPORT MEOG

Israel keen to connect

Saudi to the East Med

ISRAEL/SAUDI LOCAL Israeli media last week cited high-level of commerce and marketing, Effie Milutin, told
government sources as saying that the country S&P Platts: “The geopolitical risks in the Persian
was preparing to propose a pipeline to connect Gulf region only increase the attractiveness of the
Saudi Arabia with the Eastern Mediterranean. EAPC system.” The plan would require a 700-km
Speaking to Globes, the sources said that the extension of the Ashkelon-Eilat pipeline to the
proposal would be made to the UAE regarding Saudi city of Yanbu’ on the Red Sea coast.
an onshore oil and distillate pipeline that would Yanbu’ also serves as the receiving terminal
connect to infrastructure owned by the Eilat for the massive East-West pipeline, which is
Ashkelon Pipeline Co. (EAPC), allowing for car- currently is being upgraded to increase capacity
goes to be exported to Europe and North Amer- from 5mn barrels per day to 7mn bpd.
ica without having to pass through the Strait of State oil firm Saudi Aramco has two joint
Hormuz or the Suez Canal. venture refineries in Yanbu’ – Saudi Aramco
Discussions were reported to have been held Mobil Refinery Co. (SAMREF) and Yanbu Ara-
between EAPC’s top brass and the ministries of mco Sinopec Refining Co. (YASREF) – as well
Defence and Foreign Affairs. its wholly owned Yanbu’ Refinery. These have
The talks follow the recent peace deal signed capacities of 400,000 bpd, 430,000 bpd and
between Israel and the UAE, which noted that 250,000bpd respectively.
energy would be one of the areas of potential Despite the optimism of EAPC, any proposal
co-operation between the two countries. would require the mediation of the UAE and a
Ahead of proposing the move, EAPC softening of its stance towards Israel on the part
recently restyled itself as the Europe Asia Pipe- of Saudi Arabia, which at present appears to be
line Co., while the company’s deputy manager a stretch.™

FINANCE & INVESTMENT

Abu Dhabi’s sovereign wealth

fund buys into Cheniere

UAE THE Abu Dhabi Investment Authority (ADIA) Cheniere Energy Partners to Brookfield Asset
– the emirate’s main sovereign wealth fund – has Management’s infrastructure unit, as well as to
disclosed a 5.05% stake in US LNG exporter its own Blackstone Infrastructure Partners unit.
Cheniere Energy. The disclosure came in a Bloomberg has reported, citing sources familiar
September 14 filing with the US Securities and with the matter, that the deal involved a $34.25
Exchange Commission (SEC). per unit sale price, which puts its overall value
The fund’s interest in Cheniere, the US’ at around $7bn. The stake will be split equally
leading producer of LNG, consists of around between Blackstone and Brookfield, with each
12.7mn shares and is valued at roughly $615mn, thus owning almost 21% in Cheniere Energy
based on Cheniere’s trading price. According Partners upon the deal’s completion by the end
to Bloomberg, this makes it the fourth-largest of the third quarter of 2020.
shareholder in the US company. Cheniere itself owns a 48.6% interest in
ADIA owns almost $580bn worth of assets Cheniere Energy Partners. The limited part-
and is the world’s third-largest government nership has no involvement in Cheniere’s other
wealth fund, according to the SWF Institute. liquefaction plant, Corpus Christi LNG in Texas.
The fund’s acquisition has emerged as a major Separately, Cheniere said on September 15
stake in Cheniere Energy Partners, a limited that it had upsized and priced an offering of
partnership created by Cheniere to develop and senior secured notes due in 2028 from the ini-
operate the Sabine Pass LNG terminal, as well as tially announced $1bn to $2bn. The offering is
to act as a capital-raising vehicle, and which is expected to close on September 22.
also in the process of changing hands. The LNG producer’s share price rose above
In late August it emerged that Blackstone $50 on September 16, after news of the ADIA
Group is selling its stake of roughly 41% in stake emerged earlier that day.™

P6 www. NEWSBASE .com Week 38 23•September•2020