Sinopec, TotalEnergies to Invest $10bn in Aramco

Sinopec and TotalEnergies are reportedly in talks with Saudi Aramco to invest in Jafurah development, one of the world’s largest untapped gas fields, according to people familiar with the matter. The Chinese and French energy giants are discussing separate plans with Saudi Aramco that may include constructing facilities to export liquefied natural gas. The state-owned Saudi Arabia’s company is looking to raise approximately $10 billion for the projects.

The Jafurah gas development in Dhahran, with a value of over $100 billion, has been seeking investors to fund its midstream and downstream projects. In December, Bloomberg reported that Aramco reached out to private equity firms and large funds that invest in infrastructure to offer stakes in assets such as pipelines, carbon capture and storage projects, and hydrogen plants.

The talks with Sinopec and TotalEnergies highlight the attraction of Jafurah gas development. The project is significant in helping Saudi Arabia shift from oil-based fuel, and the country is looking to raise its gas production capacity to meet local demand and increase exports. Saudi Aramco is pushing towards renewable and clean energy, and the expansion of the gas business will play an essential role in achieving the goal of reducing emissions.

Neither Saudi Aramco, Sinopec nor TotalEnergies have yet made any public statements regarding these discussions, which are ongoing. However, the reported talks suggest that the Jafurah development continues to attract investors despite the significant investment required to develop the gas field.