Saudi Aramco's Strategic Move

In a significant development, Saudi Arabian Oil Company (Saudi Aramco) announced on Thursday the signing of an $11 billion "lease and leaseback deal" for its Jafurah gas processing facilities. This agreement, led by an investor group including Global Infrastructure Partners, a part of BlackRock, marks a pivotal step in Aramco's ambitious plans.

Boosting Gas Output

The deal is a cornerstone in Aramco's strategy to increase gas production by 60% by the year 2030. Jafurah, recognized as Saudi Arabia’s largest non-associated gas field, boasts an estimated 229 trillion cubic feet of raw gas. A newly established entity, Jafurah Midstream Gas Company, will manage the plant rights, leasing them back to Aramco for a duration of 20 years, with Aramco retaining a 51% ownership stake.

Future Prospects

"With phase one production at Jafurah set to commence this year, the development of subsequent phases is progressing smoothly. Jafurah is poised to become a key supplier to the petrochemicals sector and to energize emerging growth sectors, including AI data centers, within the Kingdom," stated CEO Amin H. Nasser, highlighting the field's potential impact on Saudi Arabia's industrial and technological advancement.