BlackRock and Saudi Aramco Partner on $11 Billion Natural Gas Deal

As per news reports, BlackRock has finalised an $11 billion lease-and-rent-back deal for natural gas processing facilities in Saudi Arabia, marking another step in the kingdom’s drive to draw foreign capital. The 20-year agreement covers plants in the Jafurah basin, involving a consortium led by Global Infrastructure Partners, which BlackRock acquired last year. 

The assets will be held by Aramco’s new subsidiary, Jafurah Midstream Gas Company, with Aramco owning 51% and GIP and partners controlling the remaining 49%.

Investment Significance and Saudi Arabia’s Capital Goals

The transaction underscores Saudi Arabia’s efforts to bring in international investors to fund its economic agenda. While the country recorded $6.4 billion in foreign direct investment inflows in the first quarter of this year, a 24% increase from 2024, it has faced challenges in attracting capital outside energy, with overall FDI falling 19% last year to $20.7 billion, the lowest since 2020. 

As per reports, Aramco’s chief executive, Amin Nasser, stated: “This foreign direct investment into the kingdom also highlights the appeal of Aramco’s long term strategy to the international investment community.”

Jafurah Basin and Previous Deals

The Jafurah basin, estimated to contain about 229 trillion standard cubic feet of raw gas, is expected to start production later this year. The project aims to provide natural gas for domestic power needs, freeing up crude oil for export. 

The $11 billion investment will be phased in, funded through GIP’s mid-market infrastructure strategy. This is not the first collaboration between BlackRock and Aramco; back in 2021, BlackRock led a $15.5 billion leaseback deal involving Aramco’s gas pipelines. Nasser himself joined BlackRock’s board in July 2023.

Read More: Saudi Aramco Eyes Investment Plans in BPCL and ONGC Refineries!

Conclusion 

The $11 billion BlackRock-Aramco deal highlights Saudi Arabia’s bid to draw global investors while advancing gas output at Jafurah. Despite energy led gains, the kingdom still struggles to secure wider FDI for its diversification goals beyond oil dependence.

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