aramco Seals $11 Billion Jafurah Gas Deal with Global Infrastructure Partners (GIP)-Led Consortium
PE FORUM > Blog > Fundraising News > deals > aramco Seals $11 Billion Jafurah Gas Deal with Global Infrastructure Partners (GIP)-Led Consortium
– Aramco signed an $11 billion lease and leaseback deal involving its Jafurah gas processing facilities with a consortium led by funds managed by Global Infrastructure Partners (GIP), part of BlackRock.
– Jafurah is Saudi Arabia’s largest non-associated gas development, with an estimated 229 trillion standard cubic feet of raw gas and 75 billion stock tank barrels of condensate.
– The project supports Aramco’s goal to increase gas production capacity by 60% between 2021 and 2030 to meet rising demand.
– A new subsidiary, Jafurah Midstream Gas Company (JMGC), will lease rights to the Jafurah Field Gas Plant and Riyas NGL Fractionation Facility and lease them back to Aramco for 20 years.
– JMGC will receive a tariff from Aramco in exchange for granting exclusive rights to process and treat raw gas from Jafurah.
– Aramco will hold a 51% majority stake in JMGC, with the remaining 49% held by investors led by GIP.
– The transaction will not restrict Aramco’s production volumes and is expected to close subject to customary conditions.
– Amin H. Nasser, Aramco President & CEO, emphasized Jafurah’s role in Aramco’s gas expansion program, its importance for petrochemicals, and its potential to power new sectors like AI data centers.
– Bayo Ogunlesi, Chairman & CEO of GIP, highlighted the investment as deepening their partnership with Aramco and addressing global needs for cleaner fuels, energy security, and affordability.
– The deal attracted strong global investor interest, with co-investors from Asia and the Middle East participating.
– The transaction will optimize Aramco’s assets and capture additional value from the Jafurah gas field.
– GIP’s mid-market infrastructure equity team has a strong investment track record in the Middle East.
– This deal builds on Aramco’s existing relationship with BlackRock, which co-led a consortium in 2022 for a minority investment in Aramco Gas Pipelines Company.
– Jafurah is Saudi Arabia’s largest non-associated gas development, with an estimated 229 trillion standard cubic feet of raw gas and 75 billion stock tank barrels of condensate.
– The project supports Aramco’s goal to increase gas production capacity by 60% between 2021 and 2030 to meet rising demand.
– A new subsidiary, Jafurah Midstream Gas Company (JMGC), will lease rights to the Jafurah Field Gas Plant and Riyas NGL Fractionation Facility and lease them back to Aramco for 20 years.
– JMGC will receive a tariff from Aramco in exchange for granting exclusive rights to process and treat raw gas from Jafurah.
– Aramco will hold a 51% majority stake in JMGC, with the remaining 49% held by investors led by GIP.
– The transaction will not restrict Aramco’s production volumes and is expected to close subject to customary conditions.
– Amin H. Nasser, Aramco President & CEO, emphasized Jafurah’s role in Aramco’s gas expansion program, its importance for petrochemicals, and its potential to power new sectors like AI data centers.
– Bayo Ogunlesi, Chairman & CEO of GIP, highlighted the investment as deepening their partnership with Aramco and addressing global needs for cleaner fuels, energy security, and affordability.
– The deal attracted strong global investor interest, with co-investors from Asia and the Middle East participating.
– The transaction will optimize Aramco’s assets and capture additional value from the Jafurah gas field.
– GIP’s mid-market infrastructure equity team has a strong investment track record in the Middle East.
– This deal builds on Aramco’s existing relationship with BlackRock, which co-led a consortium in 2022 for a minority investment in Aramco Gas Pipelines Company.