Aramco Nears $10 Billion Deal with BlackRock for Jafurah Gas Infrastructure
BlackRock-led consortium set to invest $10 billion in Aramco’s Jafurah gas infrastructure, supporting Saudi Arabia’s largest shale gas development and energy diversification goals.
The agreement, mirroring Aramco’s 2021 model, will see BlackRock and partners invest in pipelines and processing plants to support the kingdom’s largest shale gas development.
Saudi Aramco, the world’s largest oil exporter, is reportedly close to finalizing a deal worth approximately $10 billion with a consortium led by BlackRock to invest in infrastructure supporting its massive Jafurah shale gas project. The news, first reported by Reuters, indicates that the transaction will include assets such as pipelines and gas processing facilities, structured similarly to Aramco’s previous landmark infrastructure deals.
The Jafurah field — located in the Eastern Province of Saudi Arabia — is considered the kingdom’s largest unconventional gas reserve, with development expected to transform the country’s energy landscape by significantly boosting domestic gas supply. Aramco aims to leverage this supply to reduce reliance on liquid fuels for electricity generation and create a stronger base for petrochemical and blue hydrogen production.
The structure of the new deal is said to echo Aramco’s 2021 pipeline transaction, in which a group of investors led by EIG Global Energy Partners acquired a 49% stake in Aramco Oil Pipelines Co. for $12.4 billion. This precedent demonstrates Aramco’s strategic approach to monetizing existing infrastructure while retaining operational control and unlocking capital for new developments.
BlackRock’s involvement underscores growing institutional interest in energy transition-linked infrastructure, particularly as global demand for cleaner energy sources rises. By investing in the Jafurah project, the firm strengthens its footprint in the Middle East’s evolving energy sector.
As the kingdom accelerates its Vision 2030 diversification agenda, natural gas and hydrogen have become pillars of its economic and environmental strategy. The Jafurah project is not only a key domestic energy initiative but also a crucial component of Saudi Arabia’s ambition to become a global hydrogen export leader.
Aramco’s pursuit of strategic partnerships to fund capital-intensive projects while maintaining balance sheet strength reflects its adaptive approach to navigating the energy transition. The finalization of this deal will mark another milestone in aligning traditional energy production with future-forward investment strategies.
