Doha: Saudi Aramco has signed an $11 billion lease-and-leaseback deal related to gas processing facilities at the Jafurah Field in Saudi Arabia with a consortium of international investors, led by funds managed by Global Infrastructure Partners (GIP), a part of BlackRock.

According to Qatar News Agency, the Jafurah Field is the largest non-associated gas development project in Saudi Arabia, with an estimated 229 trillion standard cubic feet of raw gas and 75 billion barrels of condensates. The project is a key component in Aramco's plans to increase gas production capacity by 60% between 2021 and 2030, to meet rising demand.

As part of the transaction, a newly-formed subsidiary, Jafurah Midstream Gas Company (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 a period of 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 investors led by GIP. The transaction, which will not impose any restrictions on Aramco's production volumes, is expected to close as soon as practicable, subject to customary closing conditions.