International

Aramco awards $25bln contracts to boost Saudi gas expansion

Published on : 2024-07-01

Saudi oil giant Aramco has awarded contracts worth more than $25 billion to progress its strategic gas expansion, which targets sales gas production growth of more than 60% by 2030, compared to 2021 levels.

Announcing the contract awards, Aramco said the scope of work includes Phase II development of the vast Jafurah unconventional gas field as well as, phase three expansion of Aramco’s Master Gas System, new gas rigs and ongoing capacity maintenance.

It also involves construction of gas compression facilities and associated pipelines, expansion of the Jafurah Gas Plant - including construction of gas processing trains, and utilities, sulfur and export facilities - as well as Phase II development of the vast Jafurah unconventional gas field, phase three expansion of Aramco’s Master Gas System, new gas rigs and ongoing capacity maintenance, it stated.

The Jafurah unconventional gas field is estimated to contain 229 trillion standard cu ft of raw gas and 75 billion stock tank barrels of condensate.

According to Aramco, Phase one of the Jafurah development programme, which commenced in November 2021, is progressing as per schedule with initial start-up likely next year during the third quarter.

Aramco expects total overall lifecycle investment at Jafurah to exceed $100 billion and production to reach a sustainable sales gas rate of two billion standard cu ft per day by 2030, in addition to significant volumes of ethane, NGL and condensate.

The oil giant's Master Gas System is an extensive network of pipelines that connects Aramco’s key gas production and processing sites throughout the kingdom.

On the contract award, President & CEO Amin H. Nasser said: “These contract awards demonstrate our firm belief in the future of gas as an important energy source, as well as a vital feedstock for downstream industries. The scale of our ongoing investment at Jafurah and the expansion of our Master Gas System underscores our intention to further integrate and grow our gas business to meet anticipated rising demand."

"This complements the diversification of our portfolio, creates new employment opportunities, and supports the Kingdom’s transition towards a lower-emission power grid, in which gas and renewables gradually displace liquids-based power generation. To get where we are today, a lot of hard work, innovation and a strong ‘can do’ spirit has been demonstrated by teams across our vast network of suppliers and service providers, who have joined Aramco on this journey to build and expand our world-class energy infrastructure,” he added.

The company has awarded 16 contracts, worth a combined total of around $12.4 billion, for phase two development at Jafurah. The work will involve construction of gas compression facilities and associated pipelines, expansion of the Jafurah Gas Plant including construction of gas processing trains, and utilities, sulfur and export facilities.

It will also involve construction of the company’s new Riyas Natural Gas Liquids (NGL) fractionation facilities in Jubail — including NGL fractionation trains, and utilities, storage and export facilities — to process NGL received from Jafurah.

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