Aramco, Saudi Arabia’s integrated energy and chemicals giant, has entered into an US$11 billion lease and leaseback agreement for its Jafurah gas processing infrastructure with a consortium led by Global Infrastructure Partners (GIP), part of BlackRock. The Jafurah field, the Kingdom’s largest non-associated gas development, holds an estimated 229 trillion standard cubic feet of raw gas and 75 billion stock tank barrels of condensate. It is central to Aramco’s target of increasing gas output by 60% between 2021 and 2030 to meet surging domestic and global demand.
The transaction involves the creation of Jafurah Midstream Gas Company (JMGC), which will lease development and usage rights for the Jafurah Field Gas Plant and the Riyas NGL Fractionation Facility, then lease them back to Aramco for 20 years. Aramco will retain a 51% stake, with 49% held by the GIP-led investor group. JMGC will receive tariffs from Aramco for exclusive processing rights. The deal, which has attracted significant co-investment from Asia and Middle Eastern institutional investors, is expected to close following standard approvals.
The partnership underscores international confidence in Aramco’s unconventional gas program, with Phase One production at Jafurah slated to begin this year. Revenues from the lease arrangement will enhance asset optimisation and support the development of later phases. Beyond meeting petrochemical feedstock needs, Jafurah’s output will fuel emerging sectors such as AI-driven data centres, contributing to Saudi Arabia’s industrial diversification. For investors, the project offers stable, contracted returns from one of the region’s most strategic energy assets, while supporting the Kingdom’s role in supplying cleaner, affordable energy to global markets.
