Aramco, a leading integrated energy and chemicals company, has signed a $11 billion lease and leaseback agreement for its Jafurah gas processing facilities with a consortium of international investors led by Global Infrastructure Partners (GIP), a subsidiary of BlackRock.
Jafurah is the largest non-associated gas development in Saudi Arabia, containing an estimated 229 trillion standard cubic feet of raw gas. This development is crucial for Aramco’s goal to increase gas production capacity by 60% by 2030, in order to meet growing demand.
The newly formed Jafurah Midstream Gas Company (JMGC) will lease the Jafurah Field Gas Plant and the Riyas NGL Fractionation Facility back to Aramco for a period of 20 years. JMGC will charge Aramco a tariff for exclusive rights to process and treat raw gas from Jafurah. Aramco will hold a 51% stake in JMGC, while GIP and co-investors will control the remaining 49%.
The transaction, which will not restrict Aramco’s production volumes, is expected to close soon. This investment has attracted significant interest from global investors, enhancing the value of the Jafurah gas field and strengthening the existing relationship between Aramco and BlackRock, which co-led a minority investment in Aramco Gas Pipelines Company in 2022.
KEY QUOTES:
“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. This foreign direct investment into the Kingdom also highlights the appeal of Aramco’s long-term strategy to the international investment community. As Jafurah prepares to start phase one production this year, development of subsequent phases is well on track. We look forward to Jafurah playing a major role as a feedstock provider to the petrochemicals sector, and supplying energy required to power new growth sectors, such as AI data centers, in the Kingdom.”
Amin H. Nasser, Aramco President & CEO
“We are pleased to deepen our partnership with Aramco with our investment in Saudi Arabia’s natural gas infrastructure, a key pillar of global natural gas markets. Today’s announcement builds upon BlackRock and GIP’s longstanding relationship with Aramco to serve growing market needs for cleaner fuels, energy security and energy affordability.”
Bayo Ogunlesi, Chairman and CEO of GIP
