Aramco Signs $11 Billion Lease and Leaseback Agreement for Jafurah Gas Facilities
Dhahran, The Gulf Observer: Saudi Aramco has finalized an $11 billion lease and leaseback agreement involving its Jafurah gas processing facilities with a consortium of international investors, led by funds managed by Global Infrastructure Partners (GIP), part of BlackRock.
Jafurah, the Kingdom’s largest non-associated gas development, is estimated to contain 229 trillion standard cubic feet of raw gas and 75 billion Stock Tank Barrels of condensate. According to the Saudi Press Agency, the project is central to Aramco’s strategy to boost gas production capacity by 60% between 2021 and 2030 to meet the growing domestic and international demand.
Under the agreement, a newly established subsidiary, Jafurah Midstream Gas Company (JMGC), will acquire development and usage rights for the Jafurah Field Gas Plant and the Riyas NGL Fractionation Facility. These assets will be leased back to Aramco for 20 years, during which JMGC will receive a tariff from Aramco in exchange for granting it exclusive rights to receive, process, and treat raw gas from Jafurah.
Aramco will retain a 51% majority stake in JMGC, while the remaining 49% will be held by the investor group led by GIP. The transaction, which will not restrict Aramco’s production volumes, is expected to close as soon as possible, subject to customary closing conditions.
