Saudi Aramco Signs $11 Billion Lease Agreement for Jafurah Gas Processing Facilities
Saudi Aramco has officially sealed an $11 billion deal for its Jafurah gas processing facilities, solidifying a critical partnership with an international investor consortium led by Global Infrastructure Partners (GIP), a key player in BlackRock.
The agreement covers Aramco’s Jafurah Field Gas Plant and Riyas NGL Fractionation Facility, paving the way for the establishment of Jafurah Midstream Gas Company (JMGC). This new entity will lease the assets from Aramco for a 20-year period and then lease them back to the company.
Under the terms of the deal, Aramco will retain a 51 percent ownership stake in JMGC, while the remaining 49 percent will be held by the investor consortium led by GIP.
Upon completion of the transaction, Aramco is set to receive a whopping $11 billion in upfront proceeds, marking a significant financial milestone for the energy giant.
The deal is strategically designed to optimize Aramco’s assets and align with the robust demand for gas in Saudi Arabia. Importantly, it will not impose limits on Aramco’s production volumes, ensuring operational flexibility.
Aramco’s President and CEO, Amin Nasser, emphasized the pivotal role of Jafurah in the company’s gas expansion strategy, citing its crucial contributions to supplying feedstock for petrochemicals and driving growth in sectors like AI data centers.
The Jafurah field stands out as the largest non-associated gas development in Saudi Arabia, boasting an estimated 229 trillion standard cubic feet of raw gas and 75 billion stock tank barrels of condensate.
Aramco has ambitious plans to ramp up its gas production capacity by a staggering 60 percent between 2021 and 2030, reflecting its commitment to meeting the evolving energy needs of the region.
Bayo Ogunlesi, Chairman and CEO of GIP, hailed the investment as a testament to the critical role of Saudi Arabia’s natural gas infrastructure in addressing global energy demands.
Notably, the consortium of investors includes prominent institutional players from Asia and the Middle East, underscoring the widespread interest and confidence in this strategic partnership. — SG
