Saudi Aramco Plans Business Restructuring with New Natural Gas Segment

en.Wedoany.com Reported - On September 22, people familiar with the matter disclosed that Saudi Aramco is planning a business restructuring and intends to establish an independent natural gas segment alongside its existing two major business segments, upstream and downstream. Under the currently discussed plan, the company's main businesses would be reorganized from two segments into three: upstream, downstream, and natural gas, with each segment having its own head. Saudi Aramco has not yet publicly confirmed the restructuring plan and declined to comment on the relevant information.

The scope of discussions for the new natural gas segment includes the development of natural gas resources within Saudi Arabia as well as overseas liquefied natural gas business. The people familiar with the matter said Saudi Aramco is also studying ways to bring in external capital through partial business listings, leasing and leaseback arrangements, including the possibility of selling a minority stake in the natural gas business in the future. The relevant plans are still at the planning stage, and the specific restructuring timeline, segment asset allocation, and potential listing arrangements have not yet been made public.

One of the core assets of Saudi Aramco's current natural gas expansion is the Jafurah unconventional gas field. According to official company data, Jafurah Phase 1 began producing natural gas and condensate in 2025, while Phase 2 is still advancing procurement and construction and is expected to be completed in 2027. Saudi Aramco currently plans to increase natural gas production by about 80% by 2030 compared with 2021 levels, with the 2021 baseline production at approximately 10.1 billion standard cubic feet per day.

The Jafurah project has also already established an independent midstream asset financing arrangement. In 2025, Saudi Aramco completed an $11 billion lease and leaseback transaction, transferring the development and usage rights of the Jafurah gas processing plant and the Riyas natural gas liquids fractionation facility to Jafurah Midstream Gas Company, which then leased them back to Saudi Aramco for a term of 20 years. Saudi Aramco retains a 51% stake in the company, while investors led by Global Infrastructure Partners hold the remaining 49%. Saudi Aramco continues to maintain ownership and operational control of the relevant facilities.

According to Saudi Aramco's operating arrangements for the first half of 2026, Jafurah Phase 1 has maintained stable sales gas and condensate output, while the Fadhili gas processing plant expansion project is scheduled for completion in 2027. The company's existing natural gas processing capacity was approximately 19.6 billion standard cubic feet per day as of the end of 2025, and its natural gas business covers end-use demand including power generation, seawater desalination, industry, and petrochemicals.