Riyadh - Sharikat Mubasher: The global energy leader Aramco signed an $11 billion lease and leaseback deal for its Jafurah gas processing facilities with a consortium of global investors, led by funds managed by Global Infrastructure Partners (GIP), a part of BlackRock.
As part of the deal, a newly-formed subsidiary, Jafurah Midstream Gas Company (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 20 years, Aramco announced in a recent statement.
Aramco will hold a 51% majority stake in JMGC, with the remaining 49% held by investors led by GIP.
Being the largest non-associated gas development in the Kingdom, Jafurah is estimated to contain 229 trillion standard cubic feet of raw gas and 75 billion Stock Tank Barrels of condensate.
Amin Nasser, President & CEO of Aramco, affirmed that the participation of the GIP-led consortium as investors in Jafurah demonstrates the attractive value proposition of the project. “This foreign direct investment into the Kingdom also highlights the appeal of Aramco’s long-term strategy to the international investment community,” he said.
Meanwhile, Bayo Ogunlesi, Chairman and CEO of GIP, commented: “Today’s announcement builds upon BlackRock and GIP’s longstanding relationship with Aramco to serve growing market needs for cleaner fuels, energy security, and energy affordability.”
It is worth mentioning that Jafurah is a key component in Aramco’s plans to increase gas production capacity by 60% between 2021 and 2030 to meet growing demand.
