Aramco, one of the world’s leading integrated energy and chemicals companies, has signed an $11 billion lease and leaseback agreement for its Jafurah natural-gas processing facilities. The deal is with a consortium of international investors led by funds managed by Global Infrastructure Partners (GIP), part of BlackRock.
Jafurah
Jafurah is the largest non-associated gas development in Saudi Arabia, with an estimated 229 trillion standard cubic feet of raw gas and 75 billion stock tank barrels of condensate. The project plays a central role in Aramco’s plan to boost gas production capacity by 60% between 2021 and 2030 to meet rising domestic and global demand.
Transaction Structure
Under the agreement, the Jafurah Midstream Gas Company (JMGC) will lease development and usage rights for:
- The Jafurah Field Gas Plant
- The Riyas NGL Fractionation Facility
These assets will then be leased back to Aramco for 20 years. JMGC will collect a tariff from Aramco in exchange for the exclusive right to receive, process, and treat raw gas from Jafurah.
Aramco will retain a 51% majority stake in JMGC, while the remaining 49% will be owned by the GIP-led investor group. The deal is expected to close soon, pending standard closing conditions, and will not restrict Aramco’s production volumes.
Leadership Perspectives
Aramco President and CEO Amin Nasser emphasized the project’s significance:
“Jafurah is a cornerstone of our ambitious gas expansion program… This foreign direct investment into the Kingdom also highlights the appeal of Aramco’s long-term strategy to the international investment community.”
He noted that phase one production is set to start this year, with later phases progressing as planned. Jafurah is expected to be a key feedstock provider for the petrochemicals sector and supply energy for emerging industries such as AI data centers.
GIP Chairman and CEO Adebayo Ogunlesi added:
“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.”
Global Investor Interest
The investment opportunity in Jafurah attracted widespread interest from global investors, with co-investors including top institutional funds from Asia and the Middle East. The transaction will help Aramco optimize assets and unlock further value from Jafurah’s development.
GIP’s mid-market infrastructure equity team has a proven track record of successful investments in the Middle East. This deal strengthens the existing relationship between Aramco and BlackRock, following a 2022 minority investment by BlackRock in the Aramco Gas Pipelines Company.
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