For midstream assets connected to its Jafurah gas development, Saudi Aramco inked a $11 billion lease-and-leaseback deal with a group headed by Global Infrastructure Partners, a division of BlackRock.
According to a press statement, the agreement calls for the newly established Jafurah Midstream Gas Co. to lease the development and use rights for the Riyas NGL Fractionation Facility and the Jafurah Field Gas Plant, then return those rights to Aramco for 20 years. Aramco, which still has the only right to receive, process, and treat field raw gas, will pay the business a tariff.
The deal strengthens the already solid partnership between Aramco and BlackRock and secures one of the biggest foreign direct investments in the Kingdom’s energy industry. In a different minority investment in Aramco Gas Pipelines Co. in 2022, BlackRock co-led a group of investors.
Jafurah is a cornerstone of our ambitious gas expansion program, and the GIP-led consortium’s participation as investors in a key component of our unconventional gas operations demonstrates the attractive value proposition of the project,” stated Amin H. Nasser, president and CEO of Aramco, in a press statement.
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