Aramco, one of the world's largest integrated energy and chemicals companies, has signed an $11 billion lease-leaseback deal involving its Jafurah gas processing facilities with a consortium of international investors, led by funds managed by Global Infrastructure Partners (GIP), a part of BlackRock.
Jafurah is the largest non-associated gas development in Saudi Arabia, estimated to contain 229 trillion standard cubic feet of raw gas and 75 billion stock tank barrels of condensate. It is a key component in Aramco’s plans to increase gas production capacity by 60 percent between 2021 and 2030 to meet rising demand.
As part of the transaction a newly formed subsidiary, Jafurah Midstream Gas Co. (JMGC), will lease development and usage rights for the Jafurah Field Gas Plant and the Riyas NGL Fractionation Facility, and lease them back to Aramco for a period of 20 years. JMGC will receive a tariff payable by Aramco in exchange for granting Aramco the exclusive right to r
