Saudi Aramco Finalizes $11 Billion Leaseback Deal for Jafurah Gas Facilities

Riyadh, October 28 (Saudi Arabia Breaking News) – Saudi Aramco said on Monday it has completed an $11 billion lease and leaseback transaction for its Jafurah gas processing assets, in partnership with a group of international investors led by Global Infrastructure Partners (GIP), a subsidiary of BlackRock.

The deal, first announced in August, is part of Aramco’s strategy to unlock additional value from its infrastructure portfolio and attract long-term institutional investment into the Kingdom’s energy sector.

Under the agreement, a new Aramco subsidiary, Jafurah Midstream Gas Company (JMGC), will hold development and usage rights for the Jafurah Gas Plant and the Riyas NGL Fractionation Facility. The assets will be leased back to Aramco under a 20-year contract, with JMGC collecting tariffs for processing and treatment services. Aramco retains a 51% stake in the new entity, while the GIP-led investor consortium holds 49%.

The investor group also includes Hassana Investment Company, The Arab Energy Fund (TAEF), and Aberdeen Investcorp Infrastructure Partners, alongside participants from Asia and the Middle East.

Aramco said the transaction will strengthen the company’s balance sheet flexibility while broadening access to global capital markets for Saudi infrastructure projects.

The Jafurah development, the largest non-associated gas project in Saudi Arabia, forms a central part of the company’s plan to expand its natural gas production and support the Kingdom’s shift toward cleaner energy. The field holds an estimated 229 trillion standard cubic feet of gas and 75 billion stock tank barrels of condensates.

Production is scheduled to begin in 2025 and gradually ramp up to 2 billion standard cubic feet per day of sales gas, 420 million cubic feet of ethane, and 630,000 barrels per day of high-value liquids by 2030.

Analysts view the deal as part of a broader effort by Aramco to monetize its midstream assets while maintaining operational control and supporting Saudi Arabia’s Vision 2030 goal of diversifying its economy.