- The Jafurah midstream deal is valued at $11 billion.
- Production at Jafurah is expected to start in 2025.
- Jafurah contains 229 tscf of raw gas and 75 billion STB of condensate.
- By 2030, Jafurah aims for 2 BSCFD of sales gas and 630 MBD of liquids.
Deal Overview
Aramco has completed an $11 billion lease and leaseback agreement for its Jafurah gas processing facilities with a consortium led by Global Infrastructure Partners (GIP). The deal involves international investors, including Hassana Investment Company, The Arab Energy Fund, and Aberdeen Investcorp Infrastructure Partners.
Project Details
The Jafurah project is the largest non-associated gas development in Saudi Arabia. It is estimated to contain 229 trillion standard cubic feet of raw gas and 75 billion Stock Tank Barrels of condensate. Production is expected to start in 2025, with plans to ramp up to 2 billion standard cubic feet per day of sales gas, 420 million standard cubic feet per day of ethane, and 630 thousand barrels per day of high-value liquids by 2030.
Transaction Structure
As part of the transaction, the newly established Jafurah Midstream Gas Company (JMGC) has secured development and usage rights for the Jafurah Field Gas Plant and the Riyas NGL Fractionation Facility. These facilities are leased back to Aramco under a 20-year agreement. JMGC will collect a tariff from Aramco, which retains a 51% ownership stake, while the GIP-led investor group holds the remaining 49%.
Strategic Importance
The Jafurah project is a key component of Aramco's strategic gas expansion, focusing on meeting the growing natural gas demand in Saudi Arabia and investing in global LNG markets. The agreement imposes no restrictions on Aramco’s production volumes, supporting the Kingdom's growth ambitions across multiple sectors, including energy and petrochemicals.
