Saudi Aramco raises $11bn via Jafurah midstream lease-back deal

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Saudi Aramco has finalised an $11bn lease-and-leaseback agreement with a BlackRock-led consortium, enabling immediate capital infusion while retaining operational control of key gas midstream assets, the company said.

Under the deal, a newly created entity — Jafurah Midstream Gas Company (JMGC) — will lease development and usage rights for the Jafurah Field Gas Plant and the Riyas NGL Fractionation Facility.

JMGC will then lease the facilities back to Aramco for 20 years, during which it will receive tariff payments for exclusive processing and treatment rights of raw gas from Jafurah.

Aramco to hold 51 per cent of JGMC

Aramco will hold a 51 per cent stake in JMGC, with the remaining 49 per cent held by the investor consortium led by Global Infrastructure Partners (GIP), a BlackRock affiliate.

The Jafurah project — valued at more than $100bn and housing an estimated 229 trillion standard cubic feet of raw gas plus 75 billion stock tank barrels of condensate — is the kingdom’s largest non-associated gas development.

It is central to Aramco’s strategy to boost gas production by 60 per cent by 2030 compared with 2021 levels.

Aramco president and CEO Amin H Nasser said, “Jafurah is a cornerstone of our ambitious gas expansion programme, and the GIP-led consortium’s participation… demonstrates the attractive value proposition of the project. This foreign direct investment… highlights the appeal of Aramco’s long-term strategy to the international investment community.”

He added phase one production is scheduled to begin this year, with subsequent phases progressing on target.

Bayo Ogunlesi, chairman and CEO of GIP, remarked, “We are pleased to deepen our partnership with Aramco with our investment in Saudi Arabia’s natural gas infrastructure… building upon BlackRock and GIP’s longstanding relationship with Aramco.”

The transaction supports Aramco’s efforts to optimise its infrastructure, signaling confidence in rising gas demand in the kingdom.

It aligns with similar previously structured lease-and-leaseback deals, such as the minority stake sale in Aramco Gas Pipelines Company in 2022, reinforcing a model that secures capital while preserving control.

Read: Saudi Aramco considers asset sales to free up funds, sources say