Saudi Aramco is reportedly working with Evercore Inc. to advise on a significant restructuring effort that would establish a standalone gas division. This move could pave the way for a future listing of the unit, potentially valuing the business at more than $100 billion. The investment bank Evercore has a history of working with Aramco, including on its 2019 IPO. Boston Consulting Group (BCG) also played a role in developing these plans, advising Aramco to split off its gas operations in an initiative referred to as "Project Gamma," aimed at unlocking greater value from its gas assets.
The potential valuation of over $100 billion for the gas unit would make it about three times larger than Aramco's listed chemical unit, Sabic, which currently has a market capitalization significantly less than that figure and has experienced a more than 20% decline in share price over the past year. This valuation also exceeds the nearly $70 billion Aramco paid to acquire Sabic in 2020. Deliberations are ongoing, and the plans are subject to change. Both Aramco and Evercore have declined to comment on the matter.
Growth in Aramco's gas business is primarily centered around the Jafurah project, an unconventional field development using hydraulic fracturing techniques with an investment of over $100 billion. This project, which began its first phase in late 2025, along with other developments, is expected to boost Aramco's gas production by approximately 80% by 2030. The company targets as much as $15 billion in incremental operating cash flow from its gas business by then. This expansion aims to free up about 1 million barrels a day of crude for export, which would otherwise be used for domestic power generation, and could also lead to additional gas exports as LNG or for use in data centers. Aramco is also building a portfolio of global LNG contracts.
