Saudi Aramco Finalises $11 Billion Jafurah Midstream Deal With Global Infrastructure Partners

Saudi Aramco has finalised an $11 billion lease and leaseback deal for its Jafurah gas processing facilities. This agreement involves a consortium of international investors led by Global Infrastructure Partners (GIP), part of BlackRock. Initially announced in August 2025, this transaction aims to unlock more value from Saudi Aramco's extensive asset base and operations.

The consortium includes Hassana Investment Company, The Arab Energy Fund (TAEF), Aberdeen Investcorp Infrastructure Partners, and other institutional investors from North and Southeast Asia and the Middle East. This diverse group underscores the global interest in Saudi Aramco's ventures.

As part of the agreement, a new subsidiary, Jafurah Midstream Gas Company (JMGC), has been established. JMGC has secured development and usage rights for the Jafurah Field Gas Plant and the Riyas NGL Fractionation Facility. These facilities are leased back to Aramco under a 20-year contract.

JMGC will charge Saudi Aramco a tariff while allowing it exclusive rights to process and treat raw gas from Jafurah. Importantly, there are no restrictions on Aramco’s production volumes under this agreement.

Saudi Aramco retains a 51% ownership stake in JMGC, while the remaining 49% is held by the GIP-led investor group. This structure ensures that Saudi Aramco maintains significant control over its operations while benefiting from external investment.

Jafurah represents the largest non-associated gas development in Saudi Arabia. It is central to Aramco’s strategic plan to expand its gas capabilities, aiming to meet rising natural gas demand domestically and invest in global LNG markets.

Production Goals

The Jafurah field is estimated to hold 229 trillion standard cubic feet (tscf) of raw gas and 75 billion Stock Tank Barrels (STB) of condensates. Production is set to begin in 2025, with plans to gradually increase output by 2030.

The target production levels include 2 billion standard cubic feet per day (BSCFD) of sales gas, 420 million standard cubic feet per day (MMSCFD) of ethane, and 630,000 barrels per day (MBD) of high-value liquids.

This project is crucial for meeting growing energy demands within Saudi Arabia while positioning Aramco as a key player in the global energy market. The strategic expansion into natural gas aligns with broader goals for sustainable energy development.

With inputs from SPA