Aramco Completes $11 Billion Jafurah Midstream Deal with GIP-Led Consortium
Aramco has completed an $11 billion leaseback deal with a GIP-led consortium for its Jafurah gas processing and NGL facilities. The transaction supports Saudi Arabia’s largest non-associated gas project, expected to start production in late 2025 and expand capacity to 2 Bcf/d of sales gas by 2030.
(P&GJ) — Aramco has completed an $11 billion lease and leaseback investment agreement for its Jafurah gas processing and NGL facilities with an international investor group led by Global Infrastructure Partners (GIP), marking one of the largest energy midstream transactions in the Middle East to date.
The GIP-led consortium includes Hassana Investment Company, The Arab Energy Fund (TAEF), Aberdeen Investcorp Infrastructure Partners, and other institutional investors from North America, Asia, and the Middle East. The deal underscores sustained investor interest in Saudi Arabia’s natural gas and midstream infrastructure as the Kingdom accelerates its domestic gas development strategy.
Under the agreement, a newly formed Aramco subsidiary, Jafurah Midstream Gas Company (JMGC), will lease the Jafurah Field Gas Plant and Riyas NGL Fractionation Facility, then lease them back to Aramco under a 20-year arrangement. JMGC will collect a tariff from Aramco, while granting it exclusive rights to process and treat raw gas from the Jafurah field. Aramco will retain a 51% stake in JMGC, with the GIP-led group holding the remaining 49%.
Amin H. Nasser, Aramco President and CEO, said the agreement “demonstrates confidence in our strategy and unlocks significant value for investors,” adding that Jafurah represents a cornerstone of Aramco’s long-term gas growth plan.
Bayo Ogunlesi, Chairman and CEO of GIP, said the transaction “extends our longstanding partnership with Aramco to advance Saudi Arabia’s gas infrastructure and meet growing demand for cleaner and affordable energy.”
The Jafurah development is the largest non-associated gas project in Saudi Arabia, estimated to contain 229 Tscf of raw gas and 75 billion barrels of condensate. Production is expected to start by the end of 2025, ramping up to 2 Bcf/d of sales gas, 420 MMscf/d of ethane, and 630,000 bpd of liquids by 2030.
The transaction aligns with Aramco’s broader plan to expand gas capacity, support domestic power generation, and supply feedstock for petrochemical and industrial growth. It also complements Saudi Arabia’s ambitions to strengthen participation in global LNG markets, where Aramco is pursuing strategic export opportunities.