Aramco has signed an $11 billion Jafurah Midstream Deal with a global investor group led by Global Infrastructure Partners, marking one of the largest foreign direct investments in Saudi Arabia’s energy sector.
The Jafurah gas field, the Kingdom’s biggest non-associated gas reserve, will play a vital role in boosting natural gas supply to meet growing demand. For the instrumentation sector, this expansion means greater opportunities in advanced measurement and control systems that are essential for gas processing, fractionation, and long-term energy reliability.
Key Highlights of Jafurah Midstream Deal
- Aramco has signed an $11 billion lease and leaseback deal with a group of global investors led by Global Infrastructure Partners (GIP), part of BlackRock.
- A new company, Jafurah Midstream Gas Company (JMGC), will handle the leasing of Jafurah midstream assets and then lease them back to Aramco for 20 years.
- Aramco will receive $11 billion upfront, while keeping 51% ownership of JMGC. Investors will hold the remaining 49%.
- The deal shows growing foreign investment in Saudi Arabia’s energy sector and supports Aramco’s expansion plans to boost gas production by 60% by 2030.
About Jafurah Gas Field:
Jafurah is Saudi Arabia’s largest non-associated gas field, with an estimated 229 trillion cubic feet of raw gas and 75 billion barrels of liquids. It plays a central role in Aramco’s long-term strategy to meet rising demand for cleaner energy.
Deal Structure:
- JMGC will lease the Jafurah Gas Plant and the Riyas NGL Fractionation Facility.
- Aramco will pay JMGC a tariff for exclusive rights to process gas from the Jafurah field.
- The agreement does not limit Aramco’s production levels.
Statements from Leaders:
- Amin H. Nasser, Aramco President & CEO: called Jafurah a “cornerstone” of Aramco’s gas expansion, highlighting its role in powering industries such as petrochemicals and new sectors like AI data centers. He said the deal shows strong international investor confidence in Saudi Arabia’s energy future.
- Bayo Ogunlesi, Chairman & CEO of GIP: said the investment strengthens their partnership with Aramco and supports global energy needs for cleaner fuels, security, and affordability.
Investor Interest:
The deal attracted major investors from Asia and the Middle East, showing global interest in Jafurah. GIP’s investment builds on its previous collaboration with Aramco, including a 2022 deal in Aramco Gas Pipelines Company.
Impact:
The transaction will help Aramco optimize its assets, bring in fresh foreign capital, and create long-term value as Jafurah begins its first production phase this year.
1 Comment