EIG, Aramco strike MoU on clean energy financing
SUMMARY
Agreement follows a $12.4bn infrastructure investment deal between Aramco and EIG last year.
By Callum CyrusPOSTED IN:
Saudi Aramco has partnered with energy and infrastructure investment firm EIG to pursue dealmaking that furthers their shared sustainability objectives, EIG announced June 16.
The MoU establishes scope for Aramco and EIG to make collaborative investments in areas like hydrogen and natural gas, carbon capture and alternative fuels, as well as transportation and energy storage.
Aramco and EIG have worked together before, with the US investor leading a consortium that closed a $12.4bn lease-and-lease back investment deal for the Saudi oil pipeline system in April 2021.
EIG has committed $40.1bn to the energy sector over its 40-year history, backing 380 projects in 38 geographical markets. The portfolio includes a myriad of US midcap upstream and midstream players, including Haynesville shale-focused Aethon Energy, and Permian Basin-focused Birch Permian.
EIG's director of ESG, Emily Rodgers, said: "This MoU encompasses one of many important steps in the global effort to address climate change, and we look forward to working with Aramco to create meaningful improvements in the delivery of affordable and reliable clean energy solutions to people around the world."
