Saudi Aramco inks eleven billion dollars deal for its Jafurah gas processing assets
(MENAFN) Saudi Aramco has finalized an $11 billion lease-and-leaseback agreement for its Jafurah gas processing facilities with a consortium of international investors, marking a significant inflow of foreign investment into the Kingdom’s energy sector, according to reports.
The deal is led by funds managed by Global Infrastructure Partners (GIP), affiliated with BlackRock. Jafurah, the largest non-associated gas development in Saudi Arabia, is central to Aramco’s plan to boost gas production capacity by 60 percent between 2021 and 2030 to meet growing demand.
Under the agreement, a new subsidiary, Jafurah Midstream Gas Company (JMGC), will lease the Jafurah Field Gas Plant and Riyas NGL Fractionation Facility to Aramco for 20 years. JMGC will receive a tariff from Aramco for granting the exclusive right to process and treat Jafurah’s raw gas. Aramco will retain a 51 percent majority stake in JMGC, with investors led by GIP holding the remaining 49 percent.
The deal will not limit Aramco’s production volumes and is expected to close promptly, pending customary conditions.
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