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Saudi Aramco seeks investors in Jafurah infrastructure assets, sources say

Two people with knowledge of the situation said that Aramco, Saudi Arabia's oil giant, is looking for investors to help finance its $100 billion Jafurah Gas Project.

Saudi Aramco is aiming to be a major player in the global natural gas market by 2030 and increase its production capacity of gas by 60% from levels reached in 2021.

Jafurah is the largest shale project outside the United States. It will begin production this year, and increase to 2 billion cubic foot per day by 2030. In 2024, the U.S. will produce around 80 billion cubic foot per day of shale-gas.

Aramco will remain the operator and retain the majority of assets, according to one of the two individuals. Second person: The investment in Jafurah is expected to help develop the project.

Two people, who spoke under condition of anonymity as the process was private, have spoken.

Aramco has declined to comment.

Aramco could raise money through a potential deal for Jafurah at a time when oil prices are falling. This would be in line with recent efforts made by the oil giant to invest in its infrastructure.

BlackRock and EIG are among the investor groups who took minor stakes in Aramco’s oil and natural gas pipeline networks, in two separate deals that were completed in 2021. This helped Aramco raise almost $28 billion.

These groups have taken 49% stakes of Aramco Oil Pipelines & Aramco Gas Pipelines. Aramco still holds 51%. Aramco pays a tariff to the subsidiaries for crude oil and natural gas flows, which is backed up by minimum throughput commitments.

Aramco has built infrastructure for the Jafurah Project, including a gas fractionation plant, gas compression system, a pipeline network covering approximately 1,500 km (932 mi). Aramco's Chief Executive Amin Nasser told local media in early 2014 that the total investment in Jafurah would exceed $100 billion within 15 years.

(source: Reuters)