Aramco Signs $11 Billion Deal with GIP-Led Consortium
Saudi Aramco has finalized an $11 billion lease and leaseback agreement for its Jafurah gas processing facilities with an international consortium led by Global Infrastructure Partners (GIP), part of BlackRock.+
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Key Details of the Deal
- Assets Involved: The agreement includes Aramco’s Jafurah Field Gas Plant and the Riyas NGL Fractionation Facility.
- New Entity: The deal establishes the Jafurah Midstream Gas Company (JMGC), which will lease the assets from Aramco for 20 years and then lease them back to the company.
- Ownership Structure: Aramco will retain a 51% stake in JMGC, while the remaining 49% will be held by the investor consortium led by GIP.
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Financial Implications
Upon completion of the transaction, Aramco will receive $11 billion in upfront proceeds. This move is aimed at optimizing the company’s asset portfolio and reflects the robust outlook for gas demand in Saudi Arabia.
Strategic Importance
Aramco President and CEO Amin Nasser described Jafurah as “a cornerstone” of the company’s gas expansion program. He emphasized its significance in supplying feedstock for petrochemicals and supporting growth sectors such as AI data centers.
Jafurah Field Overview
- Largest Development: The Jafurah field is noted as the largest non-associated gas development in the Kingdom, containing an estimated 229 trillion standard cubic feet of raw gas and 75 billion stock tank barrels of condensate.
- Production Goals: Aramco aims to increase its gas production capacity by 60% between 2021 and 2030.
Global Significance
Bayo Ogunlesi, GIP chairman and CEO, highlighted that this investment underscores the critical role of Saudi Arabia’s natural gas infrastructure in meeting global energy demands. Co-investors in this venture include major institutional investors from Asia and the Middle East.
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