Saudi Aramco has finalized an $11 billion lease and leaseback agreement for its Jafurah midstream gas assets with a consortium of international investors led by Global Infrastructure Partners (GIP).
In a major move to accelerate its strategic gas expansion, Saudi Aramco, one of the world's leading energy and chemicals companies, has inked an $11 billion lease and leaseback deal for its Jafurah gas processing facilities with a consortium of global investors. The consortium is led by funds managed by Global Infrastructure Partners (GIP), a part of the investment giant BlackRock. This landmark transaction was announced from Aramco's headquarters in Dhahran on August 14.
The agreement involves a newly formed subsidiary, Jafurah Midstream Gas Company (JMGC), which will lease the development and usage rights for the Jafurah Field Gas Plant and the Riyas NGL Fractionation Facility. It will then lease them back to Aramco for a period of 20 years. In return, JMGC will receive a tariff from Aramco, which retains the exclusive rights to receive, process, and treat raw gas from the field. Aramco will hold a 51% majority stake in JMGC, while the remaining 49% will be held by the GIP-led consortium, which includes leading institutional investors from Asia and the Middle East.
Jafurah is central to Saudi Arabia’s long-term energy strategy, and the deal reinforces the kingdom's commitment to increasing its gas production capacity. As the country's largest non-associated gas development, Jafurah is estimated to contain a staggering 229 trillion standard cubic feet of raw gas and 75 billion Stock Tank Barrels of condensate. The project is a key component of Aramco's ambitious plan to boost its overall gas production capacity by 60% between 2021 and 2030, aiming to meet rapidly rising domestic demand.
Amin H. Nasser, Aramco's President and CEO, emphasized the strategic importance of the deal. “Jafurah is a cornerstone of our ambitious gas expansion program, and the GIP-led consortium's participation as investors in a key component of our unconventional gas operations demonstrates the attractive value proposition of the project," he said. Nasser also highlighted that the foreign direct investment underscores the appeal of Aramco's long-term strategy to the international investment community, noting that Jafurah is poised to become a vital feedstock provider for the petrochemicals sector and supply the energy required for new growth sectors like AI data centers in the kingdom.
Bayo Ogunlesi, Chairman and CEO of GIP, noted that the investment builds on the existing partnership, which saw BlackRock co-lead a separate minority investment in Aramco Gas Pipelines Company in 2022. This repeated collaboration reflects a shared vision to serve the growing market needs for cleaner fuels, energy security, and energy affordability.
