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Natural gas

Saudi Aramco Signs $11 Billion Deal to Develop Jafurah Gas Field

Strategic Insights

— 2 min read

Saudi Aramco's energy giant has made a significant move in its plans to increase gas production capacity by signing a $11 billion lease and leaseback deal with a consortium led by Global Infrastructure Partners, a part of BlackRock. The deal is aimed at developing the Jafurah gas processing facilities, which are expected to contain 229 trillion standard cubic feet of raw gas and 75 billion stock tank barrels of condensates. The transaction, which includes the formation of a newly-created subsidiary, Jafurah Midstream Gas Company, will enable Aramco to increase its gas production capacity by 60% between 2021 and 2030.

Key Takeaways:

  • The transaction includes a $11 billion lease and leaseback deal between Saudi Aramco and a consortium led by Global Infrastructure Partners (GIP) to develop the Jafurah gas processing facilities.
  • The Jafurah gas field is estimated to contain 229 trillion standard cubic feet of raw gas and 75 billion stock tank barrels of condensates, making it the largest non-associated gas development in the Kingdom of Saudi Arabia.
  • The deal will enable Aramco to increase its gas production capacity by 60% between 2021 and 2030.
  • The 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 to Aramco for a period of 20 years.
  • Aramco will hold a 51% majority stake in JMGC, with the remaining 49% held by investors led by GIP.
  • The transaction is expected to close as soon as practicable, subject to customary closing conditions.
  • The deal demonstrates the attractiveness of Saudi Aramco's long-term strategy to the international investment community.
  • The GIP-led consortium is also investing in Saudi Arabia's natural gas infrastructure, which is a key pillar of global natural gas markets.
  • The transaction will support the optimization of Aramco's assets and capture additional value from the development of the Jafurah gas field.
  • GIP's mid-market infrastructure equity team has a robust, long-term track record of successful investments in the Middle East.

Statistics:

  • $11 billion: The value of the lease and leaseback deal between Saudi Aramco and the GIP-led consortium.
  • 229 trillion standard cubic feet: The estimated raw gas reserves in the Jafurah gas field.
  • 75 billion stock tank barrels: The estimated condensates reserves in the Jafurah gas field.
  • 60%: The increase in gas production capacity that Aramco aims to achieve between 2021 and 2030.
  • 20 years: The duration of the lease agreement between Aramco and JMGC.
  • 51%: The majority stake held by Aramco in JMGC.
  • 49%: The stake held by investors led by GIP in JMGC.

Sources:

  • Kuwait News Agency (14 Aug 2025)
  • Saudi Aramco Press Release
  • Global Infrastructure Partners (GIP)
  • BlackRock
  • (Kuwait News Agency)

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