Business

Aramco Closes Jafurah Midstream Deal with GIP-Led Consortium

Aramco, one of the world’s leading integrated energy and chemicals companies, has announced the completion of an $11 billion lease and leaseback investment agreement for its Jafurah gas processing facilities with a consortium of international investors led by funds managed by Blackstone’s Global Infrastructure Partners (GIP).

The transaction, first announced in August 2025, further unlocks additional value from Aramco’s vast asset base and its operations, the Saudi oil major said in a statement.

Investors participating in the GIP-led consortium include Hassana Investment Company, The Arab Energy Fund (TAEF), and Aberdeen Investcorp Infrastructure Partners, as well as other institutional investors from North and Southeast Asia and the Middle East.

Aramco President and CEO Amin H. Nasser said that the agreement with a world-class infrastructure player like GIP and its consortium demonstrates confidence in Aramco’s strategy and unlocks significant value for investors.

Jafurah kickstarts Aramco’s plan to expand overall sales gas production capacity, which will contribute to Saudi Arabia’s growth ambitions across multiple sectors including energy, artificial intelligence, and major industries such as petrochemicals, he added.

GIP Chairman and CEO Bayo Ogunlesi said that the announcement builds upon BlackRock and GIP’s long history of partnership with Aramco to continue to power Saudi Arabia’s development as well as to meet growing demand for cleaner and affordable energy in markets across the world.

JMGC Formed

As part of the transaction, Jafurah Midstream Gas Company (JMGC), a newly established Aramco subsidiary, has secured development and usage rights for the Jafurah Field Gas Plant and the Riyas NGL Fractionation Facility, leasing them back to Aramco under a 20-year agreement.

JMGC will collect a tariff from Aramco while granting Aramco the exclusive right to process and treat raw gas from Jafurah. The agreement imposes no restrictions on Aramco’s production volumes, and Aramco maintains a 51% ownership stake in JMGC, with the remaining 49% held by the GIP-led investor group.

Aramco’s progress at Jafurah, the largest non-associated gas development in the Kingdom of Saudi Arabia, continues on track. The project is a cornerstone of Aramco’s strategic gas expansion, which focuses on supplying growing natural gas demand in the Kingdom while investing in global LNG markets.

Jafurah is estimated to contain 229 trillion standard cubic feet (tscf) of raw gas and 75 billion Stock Tank Barrels (STB) of condensate.

Production is expected to start in 2025, with the intention of progressively ramping up to 2 billion standard cubic feet per day (BSCFD) of sales gas, 420 million standard cubic feet per day (MMSCFD) of ethane, and 630 thousand barrels per day (MBD) of high-value liquids by 2030.

Global Business Magazine

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