Saudi Aramco, the world’s most profitable oil company, is considering selling up to five gas-fired power plants in a bold move to raise around $4 billion, according to multiple industry sources.
The asset sale is part of a broader push by the Saudi government to boost state revenues amid falling oil prices and rising national expenditure.
For a nation that relies on oil for 62% of its income, the stakes are high, according to a report by Reuters. Aramco, which generated $199 billion for the Saudi treasury in 2024, is being urged to trim costs and unlock new sources of cash. Officials say the planned divestments could include more than just power assets—housing, pipelines, and port infrastructure are also on the table.
“The pressure on Aramco to monetize assets is real,” said a Riyadh-based energy analyst who requested anonymity. “The Crown Prince’s economic transformation plans require liquidity, and this is one way to get it.”
Selling power to fuel diversification
The gas-fired plants under consideration supply power to Aramco’s own refining operations. The company owns or partly owns 18 such facilities across the Kingdom, with more coming online, including the Tanajib Gas Plant expected to start operations later this year.
While Aramco has not publicly confirmed the sale, sources say local utility firms are among the likely buyers. A successful sale could inject billions into government coffers and help offset a projected budget deficit of more than $30 billion this year.
The Kingdom’s public spending is swelling due to ambitious mega-projects like Expo 2030 and the FIFA World Cup 2034. Despite these outlays, investors remain cautious. Aramco’s stock performance has trailed expectations, adding further urgency to the push for asset optimization.
Balancing growth with financial pressure
In May, Aramco raised $5 billion through bonds and signalled more borrowing ahead. To maintain balance, it is also cutting its dividend payout by nearly a third—unwelcome news for shareholders but a necessary step given the softening global oil market.
Observers see this as part of a long-term vision led by Crown Prince Mohammed bin Salman to diversify Saudi Arabia’s economy. However, the scale of transformation—while promising—comes at a steep cost.
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