Saudi Aramco Inks $11 Billion Gas Deal with BlackRock-Led Consortium

Saudi Aramco has signed an $11B lease and leaseback agreement with a consortium led by BlackRock's Global Infrastructure Partners for its Jafurah gas processing facilities. The deal involves a newly formed subsidiary, Jafurah Midstream Gas Company, which will lease development rights for the facilities from Aramco.

Saudi Aramco (ARMCO) has signed an $11 billion lease and leaseback agreement with a consortium led by BlackRock's Global Infrastructure Partners (GIP) for its Jafurah gas processing facilities. The deal involves a newly formed subsidiary, Jafurah Midstream Gas Company (JMGC), which will lease development and usage rights for the facilities from Aramco for a period of 20 years [1][2].

Under the agreement, Aramco will hold a 51% majority stake in JMGC, with the remaining 49% held by investors led by GIP. The $100 billion Jafurah project, potentially the largest shale gas project outside the U.S., is a key component in Aramco's plans to increase gas production capacity by 60% between 2021 and 2030 [1][2].

The deal underscores Aramco's ongoing capital investment program and reflects the positive outlook for gas demand in the Kingdom of Saudi Arabia. Aramco President & CEO Amin H. Nasser stated, "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" [2].

BlackRock's GIP, a leading infrastructure investor, specializes in investing in, owning, and operating large-scale infrastructure assets. GIP's mid-market infrastructure equity team has a robust track record of successful investments in the Middle East. Bayo Ogunlesi, Chairman and CEO of GIP, commented, "We are pleased to deepen our partnership with Aramco with our investment in Saudi Arabia's natural gas infrastructure, a key pillar of global natural gas markets" [2].

The transaction is expected to close as soon as practicable, subject to customary closing conditions. The deal highlights the significant foreign direct investment into the Kingdom and underscores the appeal of Aramco's long-term strategy to the international investment community [1][2].

References:
[1] https://seekingalpha.com/news/4485822-saudi-aramco-signs-11b-gas-deal-with-blackrock-led-consortium
[2] https://finance.yahoo.com/news/aramco-signs-11-billion-jafurah-185700641.html