Saudi Arabia achieved a major milestone in its energy sector through the Jafurah gas deal with a BlackRock-led consortium worth $11 billion. This agreement focuses on midstream assets tied to the Jafurah gas project, which is the largest non-associated gas field in the Kingdom. The Jafurah gas deal highlights Saudi Arabia’s growing ambition to expand natural gas production and attract more global investors.
Aramco established Jafurah Midstream Gas Co. to oversee the Jafurah Field Gas Plant and the Riyas NGL Fractionation Facility. The Jafurah energy agreement enables the company to lease these assets to the consortium and then lease them back for 20 years. Under this structure, Aramco will pay a tariff while keeping full rights to process and treat raw gas from the Jafurah field. This model secures investment benefits while allowing Aramco to maintain operational control.
The $11 billion Jafurah gas deal stands as one of the largest foreign direct investments in Saudi Arabia’s energy market. It also deepens Aramco’s partnership with BlackRock, which had earlier invested in Aramco Gas Pipelines. By securing this deal, Saudi Arabia shows its strong commitment to natural gas development while diversifying its energy sources.
Under the Jafurah gas deal, Aramco will hold 51 percent of Jafurah Midstream Gas Co., while the consortium will own 49 percent. The deal does not include any production volume limits, which makes it even more attractive to international investors. Furthermore, Aramco plans to raise its gas output by 60 percent between 2021 and 2030, and the Jafurah gas deal provides the financial foundation to achieve this growth.
Amin H. Nasser, Aramco’s president and CEO, said the Jafurah gas deal shows the strong value of investing in the project. He explained that the participation of the consortium highlights global confidence in Saudi Arabia’s long-term energy vision. He also noted that the Jafurah field remains a central part of the company’s expansion strategy.
Bayo Ogunlesi, chairman and CEO of Global Infrastructure Partners, also emphasized the importance of the Jafurah gas deal. He stated that this partnership will deepen ties with Aramco while strengthening the global natural gas market. The project also attracted investors from Asia and the Middle East, showing worldwide trust in Saudi Arabia’s natural gas infrastructure.
The Jafurah field holds an estimated 229 trillion cubic feet of raw gas and 75 billion stock tank barrels of condensate. As production begins, the Jafurah gas deal will help Saudi Arabia meet its rising domestic energy needs and expand its role in global markets.
