Aramco, a global energy and chemical giant, has signed an $11 billion lease and leaseback contract with an international consortium of investors led by Global Infrastructure Partners (GIP), a subsidiary of BlackRock, around its Jafurah gas infrastructure. Located in eastern Saudi Arabia, Jafurah is the largest non-associated gas field in the Kingdom, with estimated reserves of 229 trillion standard cubic feet and 75 billion barrels equivalent. This project is at the heart of Aramco’s plan to increase its gas production capacity by 60% between 2021 and 2030 to meet growing demand.
As part of the deal, a new entity, Jafurah Midstream Gas Company (JMGC), has been created. This entity will hold the development and operation rights of the Jafurah gas processing plant and the Riyas NGL fractionation facility, which will be leased back to Aramco for a period of 20 years. In return, Aramco will pay a fee giving exclusive rights to process the raw gas from the field. The Saudi major will retain a majority stake of 51% in JMGC, while the rest will be held by investors led by GIP. The agreement, which imposes no limits on Aramco’s production volumes, is expected to be finalized soon, subject to customary closing conditions.
For Amin H. Nasser, President and CEO of Aramco, Jafurah is a “cornerstone” of the gas expansion strategy. He emphasizes that the entry of the GIP-led consortium into this project illustrates the “appeal of Aramco’s long-term vision to the international investor community.” While the first production phase is set to start this year, the next steps are already in development. The Jafurah field is poised to become a major source of raw materials for petrochemicals and to power the Kingdom’s new energy-intensive sectors, such as data centers dedicated to artificial intelligence.
