Aramco has sealed an $11bn leaseback deal for Jafurah gas facilities with a BlackRock-led consortium to boost Saudi gas output.
RIYADH: Saudi Aramco has signed an $11 billion lease and leaseback agreement for key gas facilities at the Kingdom’s Jafurah field with a global investor group led by funds managed by Global Infrastructure Partners (GIP), part of BlackRock. The deal supports Aramco’s goal of raising gas production by 60% by 2030.
Under the arrangement, Jafurah Midstream Gas Company (JMGC) will lease the Jafurah Gas Plant and Riyas NGL Fractionation Facility from Aramco, then lease them back for 20 years. In return, Aramco will pay JMGC a tariff for exclusive processing rights. Aramco will keep a 51% majority stake, while GIP and its Middle Eastern and Asian co-investors will hold 49%.
The Jafurah field is the largest non-associated gas resource in Saudi Arabia, holding an estimated 229 trillion cubic feet of raw gas and 75 billion barrels of condensate. It is seen as a cornerstone of Aramco’s gas expansion, aimed at supplying feedstock for petrochemicals and powering sectors such as AI data centres.
“This foreign direct investment highlights the appeal of Aramco’s long-term strategy to the international investment community,” said Aramco CEO Amin Nasser, adding that phase one production is set to start this year with further phases on track.
GIP chairman Adebayo Ogunlesi called the deal a deepening of their partnership with Aramco and “a key pillar of global natural-gas markets” that supports cleaner fuels, energy security, and affordability.
The agreement is expected to optimise Aramco’s assets, unlock value from Jafurah, and strengthen ties with BlackRock. It follows a similar investment in 2022, when BlackRock co-led a consortium into Aramco Gas Pipelines Company.
