Aramco Signs $11 Billion Lease and Leaseback Deal for Jafurah Gas Facilities with GIP-Led Consortium

Riyadh, August 15, 2025 (Saudi Arabia Breaking News) – Aramco has signed an $11 billion lease and leaseback agreement for its Jafurah natural-gas processing facilities with a consortium of international investors led by funds managed by Global Infrastructure Partners (GIP), a part of BlackRock.

Jafurah, 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 forms a central part of Aramco’s plan to boost gas production capacity by 60% between 2021 and 2030 to meet rising domestic and international demand.

Under the agreement, Jafurah Midstream Gas Company (JMGC) will lease the development and usage rights for the Jafurah Field Gas Plant and the Riyas NGL Fractionation Facility, and lease them back to Aramco for 20 years. JMGC will receive a tariff from Aramco in exchange for granting exclusive rights to receive, process, and treat raw gas from Jafurah.

Aramco will retain a 51% majority stake in JMGC, while the remaining 49% will be held by investors led by GIP. The transaction, which will not restrict Aramco’s production volumes, is expected to close following customary conditions.

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

Phase one production at Jafurah is set to begin this year, with subsequent phases progressing on schedule. The field is expected to become a key feedstock provider for the petrochemicals sector and to supply energy for emerging industries, including AI data centers.

GIP Chairman and CEO Adebayo Ogunlesi said the investment strengthens the company’s relationship with Aramco and supports “growing market needs for cleaner fuels, energy security, and energy affordability.”

The transaction attracted strong interest from global investors, including leading institutional participants from Asia and the Middle East. It follows previous collaborations between Aramco and BlackRock, including a 2022 co-led consortium investment in Aramco Gas Pipelines Company.