Aramco signs $11B deal for Jafurah gas processing projects
As part of the transaction a newly-formed subsidiary, Jafurah Midstream Gas Company (JMGC), will lease development and usage rights for the Jafurah Field Gas Plant and the Riyas NGL Fractionation Facility, and lease them back to Aramco for a period of 20 years.
JMGC will receive a tariff payable by Aramco in exchange for granting Aramco the exclusive right to receive, process and treat raw gas from Jafurah, the statement added.
Aramco will hold a 51% majority stake in JMGC, with the remaining 49% held by investors led by GIP.
The transaction, which will not impose any restrictions on Aramco's production volumes, is expected to close as soon as practicable, subject to customary closing conditions.
Jafurah is the largest non-associated gas development in the Kingdom of Saudi Arabia, estimated to contain 229 trillion standard cubic feet of raw gas and 75 billion Stock Tank Barrels. It is a key component in Aramco's plans to increase gas production capacity by 60% between 2021 and 2030, to meet rising demand.
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Leaders
4 hours ago
- Leaders
Aramco Signs $11 Billion Jafurah Midstream Deal
Aramco, one of the world's leading integrated energy and chemicals companies, has signed an $11 billion lease and leaseback agreement for its Jafurah natural-gas processing facilities. The deal is with a consortium of international investors led by funds managed by Global Infrastructure Partners (GIP), part of BlackRock. Jafurah Jafurah is the largest non-associated gas development in Saudi Arabia, with an estimated 229 trillion standard cubic feet of raw gas and 75 billion stock tank barrels of condensate. The project plays a central role in Aramco's plan to boost gas production capacity by 60% between 2021 and 2030 to meet rising domestic and global demand. Transaction Structure Under the agreement, the Jafurah Midstream Gas Company (JMGC) will lease development and usage rights for: The Jafurah Field Gas Plant The Riyas NGL Fractionation Facility These assets will then be leased back to Aramco for 20 years. JMGC will collect a tariff from Aramco in exchange for the exclusive right to receive, process, and treat raw gas from Jafurah. Aramco will retain a 51% majority stake in JMGC, while the remaining 49% will be owned by the GIP-led investor group. The deal is expected to close soon, pending standard closing conditions, and will not restrict Aramco's production volumes. Leadership Perspectives Aramco President and CEO Amin Nasser emphasized the project's significance: 'Jafurah is a cornerstone of our ambitious gas expansion program… This foreign direct investment into the Kingdom also highlights the appeal of Aramco's long-term strategy to the international investment community.' He noted that phase one production is set to start this year, with later phases progressing as planned. Jafurah is expected to be a key feedstock provider for the petrochemicals sector and supply energy for emerging industries such as AI data centers. GIP Chairman and CEO Adebayo Ogunlesi added: 'Today's announcement builds upon BlackRock and GIP's longstanding relationship with Aramco to serve growing market needs for cleaner fuels, energy security, and energy affordability.' Global Investor Interest The investment opportunity in Jafurah attracted widespread interest from global investors, with co-investors including top institutional funds from Asia and the Middle East. The transaction will help Aramco optimize assets and unlock further value from Jafurah's development. GIP's mid-market infrastructure equity team has a proven track record of successful investments in the Middle East. This deal strengthens the existing relationship between Aramco and BlackRock, following a 2022 minority investment by BlackRock in the Aramco Gas Pipelines Company. Related Topics: CST, Aramco Digital Launch AI-Powered Crowd Management Trial at Holy Sites China Is Major Market for Saudi Aramco: CEO Saudi Aramco Records $106bn Profits in 2024 Short link : Post Views: 13
Arab News
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'In Saudi Arabia, the central bank has been continuing its mission and its plan of rolling out open banking,' he added. 'This is obviously a multiyear effort, and it's culminating now with the introduction of the PIS, the Payments Initiation Service, which is expected to go live soon,' Al-Falih said. He recalled that when Lean Technologies launched in 2019, few policymakers had a roadmap for modern fintech. 'None of these regulatory kind of bodies really adopted open banking and had plans for it,' he said. 'And so there've been years of discussions and conversations and back and forth with a variety of industry bodies to get to where we're getting to today.' He added that Lean has worked closely with regulators to help shape the emerging framework. Beyond fintech, the Kingdom has implemented comprehensive reforms to the legal framework governing all businesses. 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'The challenge comes when compliance is so burdensome or complex that it diverts resources away from core growth,' he said. 'For example, in fintech, a startup may spend months navigating licensing or anti-money laundering requirements — before they've even validated their product-market fit.' As a result, he noted, some founders default to 'we'll deal with it later,' exposing themselves to legal risk. The Kingdom has signaled that it wants to avoid this trap. Regulators are increasingly adopting risk-based supervision models that calibrate oversight according to the size and systemic impact of each company. 'The most effective regulators understand that a small startup doesn't need the same oversight as a multinational bank,' Mousilli said. 'Saudi Arabia is beginning to adopt this risk-based approach, which is a positive sign.' 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