A number of companies are in talks to invest in Saudi Arabia's Jafurah gas development, including Sinopec and TotalEnergies, according to people familiar with the matter.

Several people asked not to be identified because the matter is private said the Chinese and French energy giants are in separate discussions with Saudi Aramco about the plans to export the fuel as liquefied natural gas. It is estimated that Aramco plans to raise around $10 billion for the projects.

Saudi Aramco is seeking equity investors to help fund its $100 billion Jafurah gas development in the east of the kingdom. According to Bloomberg, the state-controlled company has been seeking stakes in assets like carbon capture and storage projects, pipelines, and hydrogen plants from private equity firms and other large funds, Bloomberg reported in December. The plans are being advised by Evercore, an investment bank.

According to the people, talks are ongoing and no final decisions have been made. TotalEnergies declined to comment, while Aramco did not immediately respond to a request for comment. During China's Labor Day holiday, Sinopec did not respond to emailed inquiries.

The war in Ukraine has led to a surge in demand for natural gas, led by European nations that traditionally got their supplies from Russia. This has led to Gulf states embarking on ambitious plans to expand their gas output.

Saudi Arabia has some of the biggest gas reserves in the world. Now, Jafurah is a key part of Riyadh’s strategy to diversify its exports beyond oil. The field is estimated to hold 200 trillion cubic feet of gas, and Aramco expects to begin production there in 2025, reaching about 2 billion standard cubic feet per day of sales by 2030.

A decision to build an LNG export terminal would mark a u-turn for Aramco. The company has recently said that the majority of the gas from Jafurah and other fields would be used for the domestic market and to make blue hydrogen.

Since Aramco was fully nationalized in 1980, most foreign investment in the kingdom’s energy industry has been restricted to downstream assets such as refineries and petrochemical plants. In the past, Aramco has struck joint ventures with firms including Shell and TotalEnergies for the exploration and drilling of natural gas within its borders.