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DHAHRAN, August 18, 2025 — Saudi Aramco has finalized an $11 billion lease and leaseback agreement involving its Jafurah gas processing infrastructure, partnering with a consortium led by Global Infrastructure Partners (GIP), an affiliate of U.S. asset management firm BlackRock. The transaction marks a significant step in Aramco’s strategy to monetize midstream assets while retaining operational control.
🏗️ Deal Structure and Scope
Under the terms of the agreement:
- A newly formed subsidiary, Jafurah Midstream Gas Company (JMGC), will lease development and usage rights for the Jafurah Field Gas Plant and the Riyas Natural Gas Liquids (NGL) Fractionation Facility.
- JMGC will then lease the facilities back to Aramco for a period of 20 years, during which Aramco will pay a tariff for exclusive rights to process and treat raw gas from the Jafurah basin.
- Aramco will retain a 51% majority stake in JMGC, while the remaining 49% will be held by investors led by GIP.
The deal imposes no restrictions on Aramco’s production volumes and is expected to close following customary regulatory approvals.
🌍 Strategic Importance of Jafurah
Located in Saudi Arabia’s Eastern Province, the Jafurah basin is the largest non-associated gas development in the Kingdom. It holds an estimated 229 trillion standard cubic feet of raw gas and 75 billion stock tank barrels of condensate, making it a cornerstone of Aramco’s plan to increase gas production capacity by 60% between 2021 and 2030.
Phase one production is scheduled to begin this year, with subsequent phases already underway. The gas from Jafurah is expected to support domestic energy needs, feed the petrochemicals sector, and power emerging industries such as AI data centers.
💬 Executive Commentary
Aramco President and CEO Amin H. Nasser described the deal as a “cornerstone” of the company’s gas expansion program, emphasizing its appeal to international investors and its alignment with Saudi Arabia’s long-term energy strategy.
GIP Chairman and CEO Bayo Ogunlesi added that the investment reflects growing global demand for cleaner fuels and energy security, and deepens GIP’s partnership with Aramco.
📈 Broader Implications
This transaction builds on previous collaborations between Aramco and BlackRock, including a $15.5 billion leaseback deal involving Aramco’s gas pipeline network in 2021. It also underscores Saudi Arabia’s push to attract foreign direct investment as part of its Vision 2030 economic diversification agenda.
Aramco-Tower-Hq-Picture-by-Ali-Lajami
