RIYADH (Realist English). BlackRock has agreed an $11bn deal to lease and lease back natural gas processing facilities in Saudi Arabia, in the latest move by state-owned Saudi Aramco to attract overseas investment to the kingdom.
Under the 20-year agreement signed Thursday, an investment group led by Global Infrastructure Partners (GIP) — acquired by BlackRock last year — will take over plants in the Jafurah basin and then lease them back to Aramco. The assets will be held by a new subsidiary, Jafurah Midstream Gas Company, in which Aramco will retain a 51% stake, while GIP and co-investors will own the remaining 49%.
The deal signals fresh momentum in Riyadh’s efforts to secure foreign direct investment for its economic diversification plans. Saudi Arabia recorded $6.4bn in FDI inflows in the first quarter of 2025, up 24% from a year earlier, though overall inflows last year fell 19% to $20.7bn — the lowest since 2020 — with most investment concentrated in energy.
“This foreign direct investment into the kingdom also highlights the appeal of Aramco’s long-term strategy to the international investment community,” Aramco chief executive Amin Nasser said.
Nasser confirmed in August that Jafurah gas production was on track to begin later this year. The project aims to supply domestic energy needs, freeing crude oil for export that would otherwise be used for power generation. Aramco estimates Jafurah holds about 229 trillion standard cubic feet of raw gas, making it one of the kingdom’s largest reserves.
The $11bn investment will be deployed over time and funded through GIP’s mid-market investment vehicles, led by Mark Florian, according to a person familiar with the matter.
The deal follows previous cooperation between BlackRock and Aramco. In late 2021, BlackRock led a $15.5bn lease-and-leaseback transaction for Aramco’s gas pipeline network. Nasser joined BlackRock’s board in July 2023.
