#Saudi Arabia #Dhahran #Saudi Aramco #Jafurah #Global Infrastructure Partners

Saudi Aramco's Landmark Investment in Jafurah Gas Project

On August 15, 2025, Saudi Aramco announced a pivotal agreement aimed at enhancing its gas processing capabilities at the Jafurah site. The agreement, valued at $11 billion, involves a midstream partnership with an international consortium led by Global Infrastructure Partners (GIP), a subsidiary of BlackRock. This collaboration marks a significant milestone not only for Aramco but also for the energy landscape of Saudi Arabia.

A Strategic Midstream Move

The deal will see Aramco receiving an upfront payment of $11 billion upon completion of the deal, emphasizing the substantial investment potential associated with ongoing capital deployment efforts. Aramco's CEO, Amin H. Nasser, described Jafurah as a critical component of the company's ambitious plan to boost its gas production capacity by 60% within the next few years, aiming to meet the escalating demand for natural gas in the region.

Jafurah is notably the largest non-associated gas field in Saudi Arabia, estimated to contain approximately 229 trillion standard cubic feet of raw gas and 75 billion barrels of condensate. This new venture not only supports Aramco's operational goals but also signals a robust outlook for natural gas demand within the country.

The Working Framework

As part of the transaction, a newly established entity, Jafurah Midstream Gas Company (JMGC), will lease the development rights and utilize the gas processing facilities at Jafurah as well as the NGL fractionation plant in Riyas. The lease agreement with Aramco will extend for a period of 20 years, allowing JMGC to gain a fixed fee in return for its exclusive rights to receive, process, and treat the crude gas extracted from Jafurah.

In this arrangement, Aramco is positioned as the majority stakeholder with a 51% ownership in JMGC, while the remaining 49% will be held by GIP-led investors. Notably, this agreement does not impose any restrictions on Aramco's production volumes, ensuring operational flexibility as the gas sector evolves.

Future Prospects and Investor Interest

Bayo Ogunlesi, chairman and CEO of GIP, expressed excitement about deepening the partnership with Aramco through this investment in Saudi Arabia's natural gas infrastructure, a crucial element of global gas markets. He highlighted the long-standing relationship between BlackRock and Aramco, reinforcing their commitment to addressing increasing market demands for cleaner fuels and energy security.

The opportunity to invest in Jafurah has attracted considerable interest from global investors, including institutional players from Asia and the Middle East. This demonstrates the project's significant appeal in finally tapping one of the most critical natural gas endeavors in the region. Once finalized, the agreement will facilitate Aramco's optimization of its assets, further enhancing value creation from the Jafurah gas field.

Conclusion

Aramco's strategic midstream agreement with GIP illustrates a pivotal moment for both the company and Saudi Arabia's energy strategy. As Jafurah prepares to enter production this year, subsequent phases are progressing smoothly. The project is set to emerge as a vital source of feedstock for the growing petrochemical industry while simultaneously providing essential energy to support emerging sectors like artificial intelligence data centers in the Kingdom. This significant investment not only underlines Aramco's commitment to expanding its natural gas capabilities but also represents an essential step towards sustainable energy development in the region.