Aramco secures $11bn midstream deal with BlackRock-led consortium
Saudi Aramco has signed a substantial $11 billion lease-and-leaseback agreement with a consortium led by Global Infrastructure Partners (GIP), an affiliate of BlackRock, targeting its Jafurah gas processing facilities.
Under the terms of the agreement, a newly established subsidiary, Jafurah Midstream Gas Company (JMGC), will lease the development and operational rights for the Jafurah Field Gas Plant and the Riyas NGL Fractionation Facility. These facilities will then be leased back to Aramco over a 20-year period. In exchange, Aramco will pay a tariff, while retaining exclusive rights to receive, process, and treat the raw gas from Jafurah.
Aramco will hold a 51% stake in JMGC, with the GIP-led investor group taking the remaining 49%. The deal is structured to impose no restrictions on Aramco’s production volumes.
The Jafurah project is touted as a linchpin in Aramco’s ambitious gas expansion strategy: the largest non-associated gas development in the Kingdom, with estimated reserves of 229 trillion standard cubic feet of raw gas and 75 billion stock-tank barrels of condensate. It is pivotal to Aramco’s goal of lifting gas production capacity by 60% between 2021 and 2030.
Aramco’s President & CEO Amin H. Nasser emphasised the strategic importance of the agreement, calling Jafurah “a cornerstone of our ambitious gas expansion programme” and highlighting the attractiveness of the project to international investors. He noted that phase one production is due to commence this year, with subsequent phases progressing as planned. Jafurah is expected to play a vital role supplying feedstock to the petrochemicals sector and providing energy to emerging growth sectors such as AI data centres.
Bayo Ogunlesi, Chairman and CEO of GIP, expressed enthusiasm for deepening the partnership with Aramco, describing the investment as supportive of global demand for cleaner fuels, energy security, and affordability.
This agreement marks a continuation of Aramco’s evolving strategy of securitising infrastructure assets to attract foreign capital while retaining operational control. In 2021, similar lease-and-leaseback deals involving pipeline assets raised nearly $28 billion, involving BlackRock and other investors.
The transaction is also well-timed amid a rebound in foreign direct investment (FDI) into Saudi Arabia, which saw a 24% increase in Q1 2025 to $6.4 billion, even as overall FDI fell 19% year-on-year in the preceding period.
