Saudi Aramco is actively seeking investors for its ambitious $100 billion Jafurah gas project, with plans to enhance its infrastructure, including pipelines. This initiative is central to Aramco’s strategy to elevate its position in the global natural gas sector and aims to expand its gas production capacity by 60% by 2030 relative to 2021 levels.
Jafurah is poised to be potentially the largest shale gas project outside the United States, with production anticipated to commence this year and reaching a target of 2 billion cubic feet per day by 2030. In comparison, U.S. shale gas production was around 80 billion cubic feet per day in 2024.
Despite bringing in investors, Aramco will maintain majority ownership and operational control over the assets, confirming its ongoing commitment to the project. The influx of funds will be crucial as the company navigates a market characterized by declining oil prices.
Historically, Aramco has pursued similar strategies, such as when it secured nearly $28 billion by offering minority stakes in its oil and gas pipeline networks to investment groups like BlackRock and EIG in 2021. These earlier deals involved the establishment of subsidiaries where Aramco retains a 51% stake while the investors hold 49%.
For the development of the Jafurah project, Aramco is investing in various infrastructures, including a gas processing plant, a natural gas liquids fractionation plant, a gas-compression system, and an extensive network of about 1,500 kilometers (approximately 932 miles) of pipelines. Overall investments in the Jafurah project are expected to surpass $100 billion over the next 15 years, according to statements from Aramco’s Chief Executive, Amin Nasser.
This move not only signifies Saudi Aramco’s commitment to diversifying its energy portfolio but also reflects the broader global shift toward natural gas as a cleaner alternative to fossil fuels, suggesting a forward-looking approach in a rapidly evolving energy landscape.