Stockholm (NordSIP) – The Saudi state-owned oil company Aramco has signed an $11 billion lease and leaseback deal involving its Jafurah gas processing facilities with a consortium of international investors led by funds managed by Global Infrastructure Partners (GIP). GIP is owned by BlackRock, the world’s largest asset management firm.
Jafurah is estimated to contain roughly 6.5 trillion cubic metres of raw gas and 75 billion barrels-worth of condensate. Aramco plans to increase its gas production by 60% by 2030 from a 2021 base. A new subsidiary, 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. JMGC will receive a tariff payable by Aramco in exchange for granting Aramco the exclusive right to receive, process and treat raw gas from Jafurah. Aramco will hold a 51% majority stake in JMGC, with the remaining 49% held by a consortium of international investors led by funds managed by GIP.
Fossil fuel industry betting on natural gas
In announcing the deal on 14 August 2025 Bayo Ogunlesi, Chairman and CEO of GIP, said: “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. 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.”
In referring to cleaner fuels, Ogunlesi is reflecting the fossil fuel industry’s desire to present natural gas as a lower-carbon transition fuel, a narrative that has been rejected by the International Energy Agency (IEA), which advocates for no new fossil fuel developments within its 2050 net-zero scenario. BlackRock, which left the Net Zero Asset Managers initiative (NZAMI) earlier this year, has a longstanding relationship with Aramco. The US banks was previously involved in setting up Aramco’s Greensaif bond issuance, a deal that raised questions regarding potential ESG-related mislabelling.
In a possible sign that BlackRock is seeking to hedge its bets regarding its financed emissions, GIP also announced this week that it is acquiring 49.99% of Eni CCUS Holding, which manages carbon capture, use, and storage (CCUS) projects currently under development in the U.K., the Netherlands, and Italy.
Stockholm (NordSIP) – The Saudi state-owned oil company Aramco has signed an $11 billion lease and leaseback deal involving its Jafurah gas processing facilities with a consortium of international investors led by funds managed by Global Infrastructure Partners (GIP). GIP is owned by BlackRock, the world’s largest asset management firm.
Jafurah is estimated to contain roughly 6.5 trillion cubic metres of raw gas and 75 billion barrels-worth of condensate. Aramco plans to increase its gas production by 60% by 2030 from a 2021 base. A new subsidiary, 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. JMGC will receive a tariff payable by Aramco in exchange for granting Aramco the exclusive right to receive, process and treat raw gas from Jafurah. Aramco will hold a 51% majority stake in JMGC, with the remaining 49% held by a consortium of international investors led by funds managed by GIP.
Fossil fuel industry betting on natural gas
In announcing the deal on 14 August 2025 Bayo Ogunlesi, Chairman and CEO of GIP, said: “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. 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.”
In referring to cleaner fuels, Ogunlesi is reflecting the fossil fuel industry’s desire to present natural gas as a lower-carbon transition fuel, a narrative that has been rejected by the International Energy Agency (IEA), which advocates for no new fossil fuel developments within its 2050 net-zero scenario. BlackRock, which left the Net Zero Asset Managers initiative (NZAMI) earlier this year, has a longstanding relationship with Aramco. The US banks was previously involved in setting up Aramco’s Greensaif bond issuance, a deal that raised questions regarding potential ESG-related mislabelling.
In a possible sign that BlackRock is seeking to hedge its bets regarding its financed emissions, GIP also announced this week that it is acquiring 49.99% of Eni CCUS Holding, which manages carbon capture, use, and storage (CCUS) projects currently under development in the U.K., the Netherlands, and Italy.
